TCS Q4FY17 net profit of Rs 6,622 cr broadly in line with expectations

SMC | May 4, 2015, midnight

Tata Consultancy Services has reported net profit of Rs 6,622 crore during the quarter ended March 2016 from Rs 6,814 crore in the previous quarter. The fall in the net profit was broadly in line with expectations.

Sequentially TCS registered fall in consolidated sales from Rs 29735 crore to Rs 29642 crore for the quarter ended March 2017. OPM fell 24 basis points from 27.67% to 27.43% which saw OP fall 1.18% to Rs 8132 crore. Other income fell 16.36% to Rs 997 crore and interest cost grew 14.29% to Rs 8 crore. After providing for depreciation (up 1.81% to Rs 505 crore), PBT fall 3% to Rs 8616 crore. Provision for taxation fell 5.23% to Rs 1994 crore after which PAT fell 2.81% to Rs 6622 crore. y-o-y consolidated quarter results

On y-o-y basis TCS registered a 4.19% jump in consolidated sales. OPM fell from 27.79% to 27.43% which limited OP growth to 3%. PBT grew 2.85%. PAT was up 4.33%.

Other Developments

The company continued to hire to support business growth and employed 387,223 professionals globally from 130 nationalities. This included 34.7% of women professionals at the end of FY17 – an all-time high. The attrition rate for IT services was 10.5% (14.7% in FY16)while overall it stood at 11.5% (15.5% in FY16) on an LTM basis. FY17 saw addition of 78,912 employees, with a net addition of 33,380 employees. In Q4, there was a total gross addition of 20,093 employees and Net addition of 8,726.

As of March 31, 2017, the company has applied for 3,359 patents, including 198 applied during the quarter. Till date the company has been granted 478 patents.

It has recommended a Final Dividend of Rs 27.50 per Equity Share of Rs1 each of the Company which shall be paid/dispatched on the seventh day from the conclusion of the Annual General Meeting subject to approval of the shareholders of the Company.

Key Wins in Q4:

- Selected by a large global financial services company to provide end-to-end ADM services ŸChosen by a leading global Travel Commerce Platform company as its primary technology partner to innovate and shape a superior customer experience through the power of digital technologies

- Selected by a leading European Life Science company to design and transform IT solutions to institutionalize an agile, replicable divestiture capability

- Chosen by a large vertically integrated Utility in North America to provide end to endAssurance services for entire IT landscape and support the mobility and analytics portfolio

- Selected by a Global Consumer Electronics major as the single strategic partner to enable digital transformation of customer experience and supply chain transformation

- Chosen by a large European Utility to simplify, innovate and digitize their application  landscape to strengthen customer focus

-  Selected by India's large public sector General Insurance company for its technology transformation engagement to enable faster decision making and quick time to market Engaged by a North American pharma company to manage its applications across the Enterprise and Manufacturing Operations

-  Large APAC banking regulator selected TCS BaNCS to transform its core Banking operations and business functions

Key Wins in Digital Services in Q4

- Selected by a North American biotechnology company as a strategic partner for Digital transformation

- Engaged by an APAC resources firm for workforce re-imagination and enhanced customer engagement using Artificial Intelligence

-  Chosen by a North American engineering company to establish a dedicated Mobility Center of Excellence

-  Chosen by a European retailer as a partner to re-imagine digital marketing program

-  Chosen by a leading UK based financial services firm as technology partner for data governance

-  Chosen by a North American retailer to optimize supplier collaboration systems using Artificial Intelligence

-  Selected by an APAC Utility to augment and support their mobile application integration framework

-  Engaged by an APAC Telco to transform user experience of Mobile applications

-  Engaged by North American development bank to undertake end-to-end transformation using Cloud

 - Chosen by North American industrial company to drive their Cloud transformation strategy

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