TCS registers 3% rise in consolidated sales in Q2FY18 | Financial results | Earns more revenues from its digital services | Outlook | Fundamental Analysis | Indianotes.com




Tata Consultancy Services Ltd.’s quarterly profit rose more than expected as India’s largest software services provider added clients and earned more from its digital services.

Sequentially TCS registered 3% rise in consolidated sales to Rs 30541 crore for the quarter ended September 2017. OPM improved 170 basis points from 25.1% to 26.7% which saw OP rise 10% to Rs 8164 crore. OPM improved by 170 basis points, driven by 50 bps gain on account of favourable Forex and 120 bps savings in operating cost and SG&A efficiencies.

Other income fell 15% to Rs 819 crore and interest cost fell 74% to Rs 7 crore. After providing for depreciation (up 1% to Rs 504 crore), PBT grew 8% to Rs 8472 crore.

Provision for taxation grew 6% to Rs 2012 crore after which PAT grew 9% to Rs 6460 crore. Minority interest (MI) jumped 180% to Rs 14 crore. Thus net profit went up 8% to Rs 6446 crore.

Y-o-y consolidated quarter results

On y-o-y basis TCS registered a 4% rise in consolidated sales. OPM fell from 27.7% to 26.7%

which limited OP growth to 1%.


PBT fell 2% and PAT and net profit went down 2%.

Financial Highlights for Quarter Ended September 30, 2017

  •  Revenue at $4,739 million, +8.3 % Y-o-Y; +3.2% Q-o-Q

  •  Net Income at $1 billion, +1.6% Y-o-Y; +8.4% Q-o-Q

  •  Operating Margin at 25.1%, an expansion of 1.7% Q-o-Q

  •  Net Cash from Operations at Rs 5,809 crore i.e. 90.1% of Net Income

  •  Earnings Per Share at $0.52

  •  Dividend per share of Rs. 7.00

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