IT bellwether TCS reports double digit decline in earnings

India’s largest IT service provider Tata Consultancy Services Ltd. (TCS) reported its results for the quarter ended June 30, 2017 today.

The company's total sales for Q1FY18 came in at Rs 29584 crore, which represents a 0.2 per cent sequential decline and 0.95 per cent YoY increase.
 
During the quarter, high currency volatility and rupee appreciation against the US dollar caused reported revenue loss of Rs. 650 crore.

Its operating profit (EBIT) for the quarter amounted to Rs 6914 crores and its EBIT margin stood at 23.37 per cent. 

The company reported PAT of Rs 5950 crore, which represents a sequential QoQ decline of 10.15 per cent and a YoY decline of 5.82 per cent.

The company’s management expects to drive profitability to the target range, despite wage hike during the quarter. It expects holistic growth across all industry segments in Q1, a strong order pipeline, also closure of large platform-based transformation opportunities to drive the overall growth in the upcoming quarters.
 
During the quarter, the company completed buyback of shares of Rs 16,000 crore.
 
The board of directors has declared an interim dividend of Rs 7 per share on equity share of FV Re 1.
 
The TCS stock traded cautiously today, ahead of the quarterly results. It opened today at Rs 2449.9, touched the day's low of Rs. 2427.1 and closed for the day at Rs 2444.