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TCS Q4 rev falls 0.8%, adj net beats; full-yr growth at 15%

The News International Team

India’s largest software services exporter, TCS , said its fourth-quarter revenues fell 1.1 percent to Rs 24,220 crore, EBIT fell 0.5 percent to Rs 6,591 crore while net profit (adjusted for one-time employee bonus) rose 8.4 percent to Rs 5,906 crore. In constant currency terms, revenues were up 1.6 percent.

A CNBC-TV18 poll expected the firm to clock profits of Rs 5,410 crore on revenues on Rs 24,456 crore.

In dollar terms, revenues were down 0.8 percent sequentially. In other key metrics, volumes grew 1.42 percent QoQ, utilization (excluding and including trainees) stood at 85.4 percent and 81.5 percent while attrition was at 14.9 percent.

“We have maintained our profitability in a challenging operating environment where currency has been a strong headwind for some time,” CFO Rajesh Gopinathan said in a press release. “Despite these and other macro challenges, our goal has been to support business growth while ensure we continue to invest in a calibrated fashion for the future.”

For the full year, the firm’s annual revenues grew 15.7 percent to Rs 94,648 crore while dollar revenues rose 15 percent to USD 15.5 billion.

While refusing to provide a qualitative or quantitative guidance for FY16, CEO N Chandrasekaran said the company’s investments in digital and automation would serve as an “ideal growth springboard” for FY16 and that deal pipeline and momentum remained strong.

Last year, TCS had said it expects FY15 growth to be better than FY14’s (16.2 percent) but that was not the case.

Earlier in the day, the company announced it would pay employees a special reward, or a one-time bonus, worth a total Rs 2,628 crore to mark the 10th anniversary of the company’s initial public offering in 2004.

All employees who have completed at least one year of services will be eligible for the special bonus payment, the company said. “Each employee will be given a reward equivalent to one week’s salary for every year of service completed at TCS.”

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