TCS Q1 FY'20 net profit rises 10.8% to Rs8,131 cr

Tata Consultancy Services (TCS), India's largest software services company, on Tuesday reported a 10.8 per cent rise in its net profit for fiscal first quarter ended 30 June 2019 to Rs8,131 crore from Rs7,340 crore in the first quarter of the previous fiscal.

TCS posted a 11.4 per cent rise in revenue to Rs38,172 crore during the April-June 2019-20 quarter. Operating margin for the quarter stood at 24.2 per cent. Its revenue from digital business rose 42.1 per cent year-on-year, increasing its share to 32.2 per cent of the total revenues.
The Mumbai-headquartered company said its revenue and profits were boosted by a strong performance in its key banking, financial services and insurance segment. 
Revenues were boosted by growth in the UK, Europe and India, where business expanded by 16 per cent, 15 per cent and 15.9 per cent, respectively, TCS stated.
The company also reported the highest net addition of 12,356 employees, the- highest in 5 years
TCS also trained 315,000 employees in digital technologies while 361,000 employees acquired expertise in agile methods. IT services attrition rate stood at 11.5 per cent.
"We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter," Rajesh Gopinathan, TCS's CEO and MD, said.
"We are benefiting significantly from enterprises investing in Customer Experience to differentiate themselves in a Business 4.0 world. Our lean forward strategy is working well and our customers are benefiting from the TCS' innovation ecosystem," he added.
"Our margins this quarter fully reflect the annual increments that we effected across the board in April. Sustained rigour in operations helped deliver strong cash conversion and EPS expansion," TCS chief financial officer V Ramakrishnan said.
TCS board declared an interim dividend of Rs5 per equity share. The earnings per share (EPS) stands at Rs21.67, up 13 per cent year-on-year.
Shares of TCS today ended at Rs2,131.45 apiece on the BSE, over 2 per cent lower from its previous close.