TCS reports Rs 5,950 crore net profit in Q1, declares interim dividend of Rs 7 per share

 BT Online        Last Updated: July 13, 2017  | 19:08 IST
TCS reports Rs 5950 crore Q1 net profit, declares interim dividend of Rs 7 per share

Tata Consultancy Services (TCS), India's biggest software services exporter, posted an almost six percent fall in first-quarter profit, hurt by volatile currencies.

Consolidated net profit dropped to Rs 5,950 crore ($923.20 million) in the three months to June 30, from Rs 6318 crore, a year earlier, TCS said on Thursday.

Analysts on average expected the company to post consolidated profit of Rs 6181 crore, according to Thomson Reuters data.

The appreciation of the rupee resulted in a loss of Rs 650 crore in reported revenue, TCS added.

Commenting on the Q1 performance, CEO and MD, Rajesh Gopinathan said: "We have seen steady growth across industries in Q1. Robust volumes from major markets driven by good client additions across revenue bands and accelerating Digital adoption from customers have given us the right start to the year."

The board of directors has announced an interim dividend of Rs 7 per share for shareholders.

V Ramakrishnan, chief financial officer, 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. Despite the impact of wage hike in Q1, we continue to drive profitability to our targeted range."

The TCS stock closed 0.20 points or 4.95 percent higher at Rs 2444 level on the BSE.

The earnings were announced after market hours.

The TCS stock has so far gained 3.41 per cent this year compared with a 20.32 per cent surge in the Sensex.

(With inputs from Reuters)

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