The country's largest IT services company reported a 3.64 per cent drop in net profit at Rs 6,531 crore compared with Rs 6,778 crore in the year-ago period.
The record dividend for the third consecutive quarter is in addition to Rs 7 per share given for the second and first quarters in October and July, taking the cumulative payout to Rs 21 per share or a whopping 2,100 per cent till December 31, 2017. We signed our first $50M+ deal in digital this quarter, crossing an important milestone in the mainstreaming of digital technologies.
The company's revenues rose marginally, by 1.2 per cent, to ₹30,904 crore (₹29,735 crore).
M&S said some 250 existing technology roles would transfer to TCS, and "individual conversations will take place" with about 30 members of staff whose "functions will be carried out differently in the future". Growth was led by Energy & Utilities (+8.5% Q-o-Q), Travel & Hospitality (+2.9% Q-o-Q) and Life Sciences & Healthcare (+2.5% Q-o-Q).
The brokerage house said that Tier-1 IT companies are likely to report constant currency (CC) growth of 1-2 percent as weak seasonality kicks in the quarter accompanied by the transformation that the IT industry is going through.More news: $0.55 EPS Expected for Nucor Corporation (NUE)
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"The investments we have been making over the last few years in research and innovation, and in building intellectual property, are giving us a distinct edge.in winning such large transformational programmes", Gopinathan said, adding that the focus on digital has helped TCS bag over 150 deals in this space.
In dollar terms, the revenue stood at $4,787 million up by 9.1% yoy and 1% on qoq basis.
Operating margin at 25.2 per cent was flat sequentially, while volume growth was 1.6 per cent quarterly. "As the lagging parts of our portfolio turn around, and areas of softness reduce, we are well placed for stronger growth ahead", Rajesh Gopinathan, CEO and MD, said. "We have invested heavily in our insurance digital platform, TCS BaNCS, and our extensive USA capabilities, and are proud to partner with Transamerica in its ongoing transformation and welcome the transitioning employees to promising new careers at TCS".
Nirmal Bang Institutional Equities noted that even as Infosys expects aggregate demand environment for the industry to probably remain largely unchanged in FY19, the company remains confident of its ability to drive better growth for itself, given improving competitive positioning in digital services.
At 1:43 pm, shares in TCS were trading 0.80 per cent lower at Rs 2,766 on the BSE, whose benchmark Sensex index was down 5 points at 34,498.