TCS first quarter net profit falls 5.9 pc to Rs 5,945 cr, biggest drop in two years
India's largest software services firm Tata Consultancy Services (TCS) today reported a 5.9 per cent decline in its consolidated net profit to Rs 5,945 crore for the April-June quarter, hit by currency volatility.
It had posted a net profit of Rs 6,317 crore in the corresponding three-month period of the 2016-17 fiscal, the Mumbai-based firm said in a BSE filing.
The company, however, posted a marginal increase of 1 per cent in its consolidated revenue at Rs 29,584 crore during the quarter as against Rs 29,305 crore in the year-ago period.
When compared to the January-March 2017 quarter, its net profit during the period under review fell 10 per cent, while revenue slipped 0.2 per cent.
TCS Chief Financial Officer V Ramakrishnan said during the quarter, high currency volatility, including sharp rupee appreciation against the dollar, resulted in Rs 650 crore loss in reported revenues.
"We remain disciplined in our financial management, stay focused on generating strong cash flows and invest in our digital business," he said.
Despite the impact of wage hikes in the first quarter, TCS continues to drive profitability to its targeted range, Ramakrishnan added.
TCS CEO and MD Rajesh Gopinathan said the company has seen steady growth across industries in the first quarter of the fiscal.
"We have had excellent wins across all markets and have a good deal pipeline across industries that positions us well for growth in FY18," he added.
The company has announced interim dividend of Rs 7 per share.
Tata Consultancy Services added 11,202 (gross) employees during the quarter under review, taking its total headcount to over 3.85 lakh.