TCS Q4 results up 4.4%

TCS Q4 results up 4.4%

Yolanda Curtis
April 20, 2018

"The company issued a bonus of 1:1, which along with the share buyback, is likely to improve sentiment", Harit Shah, an analyst with Reliance Securities, said.

The company also declared total dividend of Rs 50 per share, including Rs 29 per share final dividend and Rs 21 interim dividend for the fiscal under review (FY 2018), which translates into a record 5,000 per cent per annum. While TCS's operating profit margin rose to 25.4 percent in the March quarter from 25.2 in the December quarter, Infosys' profit margin rose to 24.7 percent from 24.3 percent earlier.

"Strong demand in digital across all verticals and large transformational deal wins made this one of our best fourth quarters in recent years", said Gopinathan.

Rajesh Gopinathan, CEO of TCS, stated in a post-earnings press conference, "We had a good quarter and we wanted to share the gains with our employees". With this TCS now enjoys a valuation premium of 30 per cent over Infosys, analysts said, adding that it may continue to enjoy the premium. The company had reported a net profit of Rs 6,531 crore in the sequential quarter ended December 31, 2017 and Rs 6,608 crore in the corresponding quarter previous year.

The COO and Executive Director of TCS, Ganapathy Subramaniam said the company is executing on its Business 4.0 strategy and that is paying off very well.

"We are progressing towards stability and are well positioned to serve our clients in the new areas of demand" he added.

The company's head HR told the publication that the average payouts across their businesses were 2-6 per cent. TCS, which is India's biggest IT outsourcer, reported better than estimates profit for the January to March quarter as all industry verticals except BFSI grew above the company average.

V Ramakrishnan, Chief Financial Officer, said: "disciplined execution delivered an all-time high cash conversion in Q4".

TCS has focused on internal talent development at scale, making large investments in a digital learning platform that empowers employees to acquire new skills and stay relevant at a time of vast technology change, the company said. At an overall level, the focus on training resulted in over 5.6 million learning days in FY 18, over 247,000 employees getting trained on digital technologies, and 208,000 employees trained on Agile methodologies. "The multiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives", he further said.

Women account for 35 per cent of the total workforce, which has nationalities from 131 countries.

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