Tata Consultancy Services net profit drops by 2.5% in Q4FY17

Tata Consultancy Services (TCS) on Tuesday announced its financial result for the quarter ended on March 31. The company reported a net profit of Rs 6608 crore, down 2.5%, as against Rs 6778 crore in the previous quarter. For the whole financial year, the company registered a net profit of Rs 26,289 crore, up 8.9% on year-on-year basis.

The annual revenue of the company stood at Rs 1.17 lakh crore, up 8.6%. While in Q4FY17 the total revenue was Rs 29,642 crore, up 4.2% year-on-year and down 0.3% on quarter-on-quarter basis. 

The cash flow from operations in FY17 was at Rs 26,992 crore, up  15.4% y-o-y basis. 

Commenting on the performance of the company, Rajesh Gopinath, CEO and MD, said, "FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets."

"We added $1.4 billion dollars in constant currency revenues during the year and increased our digital revenues sharply as we helped our customers leverage the Digital Economy. Our digital business grew at 29% annually with most industries showing double digit growth as we steadily increased the number of customers across different revenue bands," Gopinath added.

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said, "Technology is driving different industries to rapidly evolve in new, uncharted ways. To stay relevant, enterprised have to go full on digital, stay agile and delight customers with a superior always-on experience."

V. Ramakrishnan, CFO, said, "Despite headwinds from currencies, we have ended FY17 with an industry-leading financial performance while generating strong cash flows. We continue to invest to support organic growth of our digital business, build new market segments and drive profitability in our targeted range." 

The company in its regulatory filing said that the financial year 2016-17 saw broad-based growth across markets with all industry verticles except BFSI, Retail and Hi-tech growing in double digits. 

Among major markets, Europe grew in double digits (13.6%) and crossed $2 billion milestone in revenues followed by North America (7.6%) and UK (6.1%). 

The company said that the company continued to hire to support business growth and employed 3,87,223 professionals globally from 130 nationalities. The attrition rate for IT services was 10.5% as against 14.7% in FY16 while overall it stood at 11.5% as against 15.5% in FY16 on an LTM basis.