TCS Q4 in line with estimates, better than Infosys on several parameters

After six consecutive quarter miss on revenue growth, India’s largest IT services provider Tata Consultancy Services' (TCS) fourth quarter results for the fiscal year 2015-16 were in-line with market expectations, and with management sounding confident about growth in FY17. On volume and revenue basis TCS beat its closest competition, Infosys.  Share Market Astrology

TCS fourth quarter net profit came in at Rs 6,341 crore up 64.4% year-on-year (y-o-y) and 3.8% sequentially.  Revenue for the quarter at Rs 28,449 crore was up 17.5% y-o-y and 4% quarter-on-quarter. The revenue was in line with Bloomberg estimate and were higher by a mere 0.4% and net profit was up 1%.        Nifty Trading Tips

In terms of US dollar growth, TCS reported revenue growth of 1.5% sequentially and 2.1% in constant currency basis. Infosys on the other hand reported US dollar growth of 1.6% sequentially and 1.9% on constant currency. On the volume front TCS managed to beat Infosys with a growth of 3.2%, while the latter reported a growth of 2.4%.   Jackpot Stocks Trading Tips

“We are ending the year on a stronger terms. Our core portfolio performed strongly in a seasonally weak fourth quarter driven by strong volumes led by growth in BFSI, retail and manufacturing sectors. This gives us good momentum going into the new financial year. Our investments in building high impact digital platforms is paying off, resulting in over $2.3 billion in digital revenues,” said N Chandrasekaran, MD and CEO, TCS.     Commodity Market Astrology Tips

However, TCS was not as lucky as Infosys in terms of profitability during the quarter with the operating margin contracting by 50 basis points at 26.1%, owing to currency volatility, drop in realization and SG&A.    Stock Market Trading Tips

“In FY16, we have balanced our focus on delivering an industry leading financial performance with our ongoing investment program designed to capture evolving Digital demand. We have invested over $250M to support organic growth in our Digital businesses and in new markets, while maintaining our profitability within our desired range and generated strong operating cash flows as well,” said Rajesh Gopinathan, Chief Financial Officer.  Himanshu Tiwari Astrologer Blog

One big positive for the company was the continuing growth in its digital services and its increasing share in the revenue. At the end of the quarter, digital revenue was 15.5% with a revenue of $2.3 billion. This was up 52% y-o-y on a constant currency basis.  Financial Astrology