TCS clocks 4.4% rise in net, bets on BFSI revenue Profit at Rs 6,904 cr; offers 1:1 bonus share

Tata Consultancy Service (TCS), the nation's largest software exporter, on Thursday reported a 4.4 per cent rise in March quarter net profit at Rs 6,904 crore and guided towards a better show in fiscal 2019.

The Tata group flagship, which contributes around 85 per cent of the group profit, reported a revenue growth of 8.2 per cent at Rs 32,075 crore for the three months to March. In dollar terms, the company had its highest revenue growth in 14 quarters at 11.7 per cent.

For the full fiscal year to March 2018, the company saw its net profit dip 1.7 per cent to Rs 25,826 crore, though revenue rose 4.3 per cent to Rs 1.23 lakh crore.

"To some extent (it has been) a sobering year that it is both a time of optimism as well as the fact that the year has actually been lower (on revenue growth) than in the recent past," MD and CEO Rajesh Gopinathan said. He was quick to add, however, that they are on the right trajectory and will achieve the targeted double-digit growth in dollar revenue in FY19, pointing out to the 11.7 per cent growth achieved in the March quarter.

The country’s top software services exporter is more confident about BFSI revenues from North America as client discussions show there is “not much stress left in the system,” and this could potentially translate into better client spending through the course of the year, Gopinathan said. TCS reported a $185 million increase in dollar revenue, the highest ever quarterly growth in its history. TCS has announced a wage hike of 2-6 per cent depending on the geography, while it has also announced a 120 per cent payout of target variable pay. It announced a 1:1 bonus of shares and a dividend of Rs 29 a share, taking the total payout to shareholders at Rs 50 for the year.