Stock Fundamentals

Rupee rise shrinks TCS’ profit

Vivek Ananth | Updated on July 14, 2019 Published on July 14, 2019

 

Tata Consultancy Services Ltd (TCS), for the first quarter (April-June) of FY 2019-20 reported consolidated revenue of Rs 38,172 crore, up 11.4 per cent from a year ago. In constant currency terms, revenue grew by 10.6 per cent y-o-y to $5.49 billion. Consolidated net profit rose 10.8 per cent to Rs 8,131 crore.

 

Most of the growth came from digital (32.2 per cent of the total quarterly revenue); digital revenues have reached an annual run rate of $7 billion.

While annual growth numbers were healthy, the sequential performance was flat. Total revenue in the June 2019 quarter fell 0.4 per cent compared to March quarter in FY19. The revenues of banking, financial services and insurance (BFSI), manufacturing, and retail and consumer business industries, which make up over 50 per cent of the company’s revenues, fell sequentially.

A strengthening rupee and salary hikes impacted the company’s operating margin which fell by nearly 90 basis points sequentially to 24.2 per cent.

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.


  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.


  • Ad free experience

    Experience cleaner site with zero ads and faster load times.


  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor