TCS stock slips 1% despite better Q3 numbers

Lloyd Doyle
January 12, 2018

The revenue for the quarter stood at Rs 30,904 crore. "1 per cent in the second quarter", said TCS Human Resources Global Head Ajoy Mukherjee in a statement here.

The company said volume growth was the strongest for this quarter in three years.

BFSI revenue dipped 0.4 percent as the company reported a 3.6 percent fall in net profit to 65.31 billion rupees ($1.03 billion) in the quarter to December 31.

On sector-wise performance, BFSI segment declined by 0.42% yoy and 2.11% qoq basis and came in at Rs 11,970 crore during the quarter. APAT estimated to be Rs 6,563 crore, 1.6/-3.7% QoQ/YoY.

"As lagging parts of our portfolio turn around, and areas of softness reduce, we are well placed for stronger growth ahead", said Rajesh Gopinathan, CEO & MD, TCS.

"Digital solutions contributed 22 per cent to the overall revenue, registering 39.6 per cent growth annually and 13.9 per cent quarterly in constant currency", said the company in a statement. Continuing investments by clients in digital initiatives saw more than 150 wins for TCS. We signed our first $ 50 million plus deal in digital this quarter, crossing an important milestone in the mainstreaming of digital technologies.

During the quarter, TCS saw its IT attrition rate (LTM) coming down 0.2 per cent sequentially to 11.1 per cent.

In terms of geography, growth was led by Latin America (+5% on quarter), Continental Europe (+2.6%) and North America (+1.5%). On yearly basis, the continental Europe grew by a whopping 22.3%, United Kingdom by 8.2% and India also performed well by 4.1%, while North America grew by 2.8% yoy. North America grew at 1.5% while the United Kingdom grew at 8.2%.

The percentage of women in TCS rose further to 35.2 per cent in Q3.

"Our company enjoys best in class employee retention rates", said Mukherjee. The total number of shares traded during the day was 70315 in over 3345 trades.

Other reports by Iphone Fresh

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