Tata Consultancy Services Ltd (TCS), for the first quarter (April-June) of FY 2019-20 reported consolidated revenue of Rs 38,172 crore, up 11.4 per cent from a year ago. In constant currency terms, revenue grew by 10.6 per cent y-o-y to $5.49 billion. Consolidated net profit rose 10.8 per cent to Rs 8,131 crore.
Most of the growth came from digital (32.2 per cent of the total quarterly revenue); digital revenues have reached an annual run rate of $7 billion.
While annual growth numbers were healthy, the sequential performance was flat. Total revenue in the June 2019 quarter fell 0.4 per cent compared to March quarter in FY19. The revenues of banking, financial services and insurance (BFSI), manufacturing, and retail and consumer business industries, which make up over 50 per cent of the company’s revenues, fell sequentially.
A strengthening rupee and salary hikes impacted the company’s operating margin which fell by nearly 90 basis points sequentially to 24.2 per cent.