TCS reported 24.1 percent growth in net profit at Rs 8,105 crore for the quarter ended December 2018. The company posted a net profit of Rs. 6,531 crore in the same period last fiscal as per Indian accounting norms. The Tata Group firm accounts for the lion's share of the group's overall profit. It reported revenue growth of 20.8% at Rs 37,338 crore for the said quarter, up from Rs 30,904 crore a year earlier.
TCS Chief Executive Officer and Managing Director Rajesh Gopinathan said in a statement that they are wrapping up 2018 with strong revenue growth of 12.1% in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies. He said that the strong client metrics, industry-leading growth in digital services, a very strong order book and deal pipeline are validations that customers recognise TCS' differentiated capabilities.
However, its profitability as measured by EBIT margin declined to 25.6% in Q3. An ET Now poll had estimated TCS' EBIT margin at 26.8%. It may be noted that the October-December quarter is a seasonally soft quarter for IT companies because of the holiday season. the company has declared a dividend of Rs 4 per share. In constant currency terms, TCS' revenue grew 1.8% sequentially, in-line with estimates. But due to cross-currency impact, its dollar revenue grew 0.07% sequentially to $5,250 million, as compared to ET Now poll of $5,267 million.
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