HomeInformation Technology NewsHappy that we are on a double-digit growth trajectory, says TCS

Happy that we are on a double-digit growth trajectory, says TCS

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By CNBC-TV18 April 20, 2018, 2:45:17 PM IST (Updated)

Happy that we are on a double-digit growth trajectory, says TCS
It was a trendsetting quarter from Tata Consultancy Services (TCS) this time.


The company has managed to improve margins by 20 basis points (bps) to 25.4 percent.

The company posted a rise in net profit of 4.5%, beating market expectations. Net profit stood at fourth quarter is Rs 6,904 crore.

More importantly, commentary for FY19 is also optimistic which makes the analyst community believe that perhaps even double digit growth is likely for TCS in the coming year.

Rajesh Gopinathan, MD and CEO of TCS said, “Will not like to downplay expectations but realistically speaking, we are happy that we are on a double digit trajectory. We have broken in to double digit on dollar terms. On constant currency, it is still work in progress. Our focus, determination everything is to try and get to that double-digit mark on all parameters.”

“We don’t see structural challenges to our margins but currency has to be benevolent and many other factors have to come in but structurally we are comfortable where we are and we are focused on getting back to our preferred margin band,” he added.

>>Expect digital and traditional services to merge in future, says Rajesh Gopinathan

TCS' dollar revenue grew at 3.9%; Q4 incremental revenue at $185 million, highest ever in a fourth quarter and the digital revenue grew 42.8% year-on-year (YoY) to 23.8%, cross $4 billion up 35% Y-o-Y.

“We believe that there is reasonable amount of opportunities for us to play and that is what gives us the confidence,” said NG Subramaniam, COO of TCS.

“This quarter we have won about 250 plus digital wins, all this gives us the confidence that there is going to be scale in digital that should play well for us on the margin side as well because these deals come up at a slightly improved margin. We believe that we are in a good wicket and year-on-year we have grown 35 percent on digital services. We expect that to grow in a much more aggressive manner,” he further mentioned.

>>TCS sees rebound in financial client spending in 2018/19

“BFS we would still be a little bit cautious. We want things to pan out. We are seeing those signs now,” said V Ramakrishnan, CFO of the company.
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