TCS Q1 net profit falls 5.9% to Rs 5,945 cr as rupee rise shaves off Rs 650 cr revenue

Mumbai: India’s largest software services firm Tata Consultancy Services (TCS) today reported a 5.9 percent decline in its consolidated net profit to Rs 5,945 crore for the April-June quarter, hit by currency volatility. It had posted a net profit of Rs 6,317 crore in the corresponding three-month period of the 2016-17 fiscal, the Mumbai-based firm said in a BSE filing. The company, however, posted a marginal increase of 1 percent in its consolidated revenue at Rs 29,584 crore during the quarter as against Rs 29,305 crore in the year-ago period. [caption id=“attachment_3809549” align=“alignleft” width=“380”]  Rajesh Gopinathan, TCS CEO & MD, PTI[/caption] When compared to the January-March 2017 quarter, its net profit during the period under review fell 10 percent, while revenue slipped 0.2 percent. TCS Chief Financial Officer V Ramakrishnan said during the quarter, high currency volatility, including sharp rupee appreciation against the dollar, resulted in Rs 650 crore loss in reported revenues. “We remain disciplined in our financial management, stay focused on generating strong cash flows and invest in our digital business,” he said. Despite the impact of wage hikes in the first quarter, TCS continues to drive profitability to its targeted range, Ramakrishnan added. 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 interim dividend of Rs 7 per share. Tata Consultancy Services added 11,202 (gross) employees during the quarter under review, taking its total headcount to over 3.85 lakh.