Tcs Q4 Results 2012 Analysis Essay

Tata Consultancy Services (TCS) on Tuesday reported financial results for the quarter ended March 31, 2017, which was a tad below market projections. Shares of the company closed 0.53 per cent down at Rs 2,308 before the release of earnings numbers.

Here are the key takeaways from TCS’ fourth quarter earnings:

Net profit: The IT major on Tuesday posted 2.51 per cent quarter-on-quarter (QoQ) drop in bottom line at Rs 6,608 crore for the quarter ended March 31, 2017. The company had posted a net profit of Rs 6,778 crore for the sequential quarter ended December 31, 2016. Net profit of the company jumped 4.23 per cent on a year-on-year basis.

Income from operations (net): The company said net sales de-grew 0.3 per cent QoQ to Rs 29,642 crore, which was lower than a Rs 29,945 crore estimate that analysts had made in the ETNow survey.

Also read: TCS reports 2.5% QoQ drop in Q4 net profit

Earnings per share: EPS of the company slipped to Rs 33.52 as of March 31, 2017, from Rs 34.40 in Q3.

Profit before tax: Consolidated profit before tax stood at Rs 8,616 crore in Q4 of FY17, down 3.38 per cent from Rs 8,918 crore reported for Q3FY17.

Dividend: The company proposed a final dividend of Rs 27.50 per share.

From the desk of CEO & MD: Financial year 2017 was a year of broadbased growth amidst economic and political turbulence in key markets. The company added $1.4 billion dollars in constant currency revenues during the year and increased digital revenue sharply as it tried to help customers leverage the digital economy. Digital business of TCS grew 29 per cent annually with most industries showing double-digit growth, as the company steadily increased the number of customers across different revenue verticals.

MUMBAI (Reuters) - India’s biggest software services exporter Tata Consultancy Services Ltd (TCS) beat quarterly profit forecasts on Monday, but the results were overshadowed by an adverse judgment claiming it breached trade secrets.

Last week, a jury in Wisconsin found TCS guilty of illegally accessing Epic Systems’ data when working for a common client and awarded Epic Systems $940 million in damages - believed to be one of the largest trade-secrets penalties ever.

TCS has denied any wrongdoing and said it will defend its position vigorously in appeals to higher courts. Senior company executives did not comment further on the case on Monday at a news conference to announce fiscal fourth-quarter results.

The ruling underscores increasing scrutiny faced by Indian software outsourcers in the United States, their biggest market, amid growing protectionism in an election year.

The Epic Systems case will likely be lengthy and, irrespective of the final decision, could lead to “management distraction and hit to reputation” for TCS, Ambit Capital analyst Sagar Rastogi wrote in a note to clients.

For the three months to March, net profit jumped 64 percent to 63.41 billion rupees ($952.82 million), ahead of analysts’ average estimate of 62.80 billion rupees. The year-ago quarter profit had been hurt by a one-off employee bonus.

TCS Chief Executive N. Chandrasekaran said he expected the financial services sector in North America and Europe to stay strong this year and that the company saw a “positive momentum” in Japanese business, a laggard in recent quarters.

Rival Infosys Ltd last Friday forecast strong revenue growth and reported its third successive estimate-beating earnings on new client wins.

($1 = 66.5500 Indian rupees)

Our Standards:The Thomson Reuters Trust Principles.

Writing by Devidutta Tripathy; Editing by Mark Potter

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