TCS Q4 net grows 4.2% at Rs 6608 cr, but misses analysts' estimates

Mumbai:  Tata Consultancy Services (TCS) today reported 4.2 percent growth in net profit at Rs 6,608 crore for the quarter ended March 2017, but missed analysts’ estimates. The company had reported a net profit of Rs 6,340 crore in the same period last fiscal as per Indian accounting norms. Analysts had, on average, expected a consolidated profit of Rs 6,662 crore. The Tata Group company, which accounts for more than 60 percent of the group’s overall profit, reported a revenue growth of 4.2 per cent at Rs 29,642 crore for the said quarter, up from Rs 28,449 crore a year earlier. “2016-17 was a year of broad-based growth amid economic and political turbulence in our key markets. We added US $1.4 billion in constant currency revenues during the year,” TCS CEO and MD Rajesh Gopinathan said. [caption id=“attachment_3391296” align=“alignleft” width=“380”]  Reuters[/caption] He added that the company’s digital business grew 29 percent annually to US $3 billion, with most industries showing double-digit growth. At the end of the fourth quarter, digital revenues were at 17.9 per cent, with a sequential growth of 7.6 percent. For the entire 2016-17, TCS saw its net profit growing 8.3 percent to Rs 26,289 crore while revenue was up 8.6 percent at Rs 1,17,966 crore. During the January-March 2017 quarter, TCS added 20,093 employees (gross) while on a net basis, the addition was 8,726, taking the overall employee strength to 3,87,223. Attrition rate was at 11.5 percent on LTM basis.       .