TCS profitability margins are subdued in Q1FY17

Tata Consultancy Services (TCS) has declared its Q1FY17 results on Thursday after market hours. The company’s consolidated revenue has increased by 3.01 per cent to Rs 29305 crore in Q1FY17 as compared to previous quarter. Its EBITDA has decreased by 0.89 per cent to Rs 7837 crore in Q1FY17 on a quarterly basis. The net profit of TCS has reduced 0.46 per cent to Rs 6318 crore in Q1FY17 as compared to previous quarter. Its net profit margin has contracted by 75 basis points to 21.56 per cent in Q1FY17 on a quarterly basis.

On the yearly front, the top line of TCS has increased by 14.17 per cent to Rs 29305 crore in Q1FY17. The company’s EBITDA too has risen by 8.83 per cent to Rs 7837 crore in Q1FY17 as compared to same period in previous financial year. Its bottom line also has risen by 9.44 per cent to Rs 6318 crore in Q1FY17 on a yearly basis.

On segmental front, TCS has earned revenue of 40.39 per cent from banking, financial services and insurance segment; 10.41 per cent from manufacturing; 17.89 per cent from retail and consumer business; 16.64 per cent from communication, media and technology; 14.68 per cent from others during Q1FY17.

TCS has added 17792 gross employees during Q1FY17. The company also has added six clients worth more than USD 20 million band and four clients in more than USD 50 million band. It also witnessed fall in attrition rate for third consecutive quarter to 13.6 per cent during last twelve months.

The share price of TCS has increased by 1.16 per cent on bourses; and closed at Rs 2520 on an intraday basis.

TCS is an Information Technology (IT) services, Consulting and Business Solutions organisation. The company offers a consulting-led, integrated portfolio of IT, Business Process Services (BPS), Infrastructure, Engineering and Assurance services. TCS offers software, including Digital Software and Solutions, TCS BaNCS, TCS MasterCraft and TCS Technology Products.