NEW DELHI: India’s biggest software services exporter Tata Consultancy Services (TCS) on Thursday reported a nearly 6 per cent fall in its net profit to Rs Rs 5,945 crore for the April-June quarter. The IT behemoth missed first-quarter profit estimates on as a stronger rupee hit revenue.
It had posted a net profit of Rs 6,317 crore in the corresponding three-month period of the fiscal year 2016-17.
The company, however, posted a marginal increase of 1 per cent in its consolidated revenue at Rs 29,584 crores during the quarter as against Rs 29,305 crore in the year-ago period.
On a quarter-on-quarter basis, the net profit slipped 10 per cent while the revenue came down by 0.2 per cent, as compared to the January-March 2017 period.
TCS Chief Financial Officer (CFO) V Ramakrishnan said that the rupee’s appreciation against the dollar had meant a loss of Rs 6.50 billion in reported revenue. The rupee has appreciated about 5 per cent this year.
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 an interim dividend of Rs 7 per share.
Source: Times of India