TCS Q4 results 2018 declared, profit at Rs 6,904 cr; Rajesh Gopinathan says highest incremental $ Q4 ever
TCS Q4 results 2018 declared, profit at Rs 6,904 cr; Rajesh Gopinathan says highest incremental $ Q4 ever
Tata Consultancy Services (TCS), Country's largest IT firm, on Thursday reported 5.7 per cent jump in net profit at Rs 6904 crore in the March quarter of financial year 2018. The Mumbai-headquartered company had posted a net profit of Rs 6,531 crore in the December quarter of the FY18, the company said in a BSE filing. The IT major's revenues rose 3.8 per cent to Rs 32,075 crore from Rs 30,904 crore reported in Q3FY18. The company declared bonus issue. TCS Board approved 1:1 bonus issue. The TCS board also approved final dividend of Rs 29 per share.
"Strong demand in digital across all industry verticals and large transformational deal wins have made this one of our best fourth quarters in recent years. The strong exit allows us to start the new fiscal on a confident note," said Rajesh Gopinathan, CEO and MD, Tata Consultancy Services.
"As customers move forward in their Business 4.0 journeys, TCS is helping them leverage digital technologies to drive their growth and transformation agendas. The mUltiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives," he added.
Brokerage Motilal Oswal Securities had expected revenue growth for TCS to pick up in 4QFY18 to 2.2 per cent QoQ in constant currency (CC) terms from 1.3 per cent in the previous quarter, led by ramp-up of recently-won deals. With cross-currency tailwinds of 110 basis points, it expects dollar revenue growth of 3.3 per cent QoQ.
"Our EBIT margin estimate for Q4 stands at 25.5 per cent (+30bp QoQ), led by currency benefits. However, we expect margins to take a hit Q1FY19 onwards as lower margin deals start to hit profitability, in addition to the usual headwinds of visa expenses and wage hikes," it said.
In the December quarter, TCS posted 3.94 per cent dip in consolidated net profit at Rs 6,531 crore from Rs 6,814 crore in the corresponding period of the previous year. However, the Q3FY18 net profit witnessed a sequential growth of 1.31 per cent as against net profit of Rs 6,460 crore in the preceding quarter.
TCS share price settled at Rs 3190.65, up 1 per cent on the BSE. MOSL has a neutral rating on the stock. The stock trades at 19.8x FY19E and 18x FY20E earnings, it said.
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TCS Q4 results 2018: A triumphant Rajesh Gopinathan, CEO and MD said, "This is our highest incremental dollar Q4 in our history".
TCS Q4 Result 2018
Track all key highlights and videos here
V Ramakrlstman, Chief Financial Officer
Disciplined executIon delivered an all-time high cash conversion in Q4. We stayed geared for higher growth, and continued to invest in our people and in the business. With revenue growth improving, and our digital business scaling up, we expect our margins to remain in a stable range.
N Ganapathv Subramaniam, Chief Operating Officer & Executive Director
We are executing on our Business 4.0 strategy and that Is paying off very well. Our participation in our customers' digital spending is expanding ahead of the industry. Six of our industry verticals grew above the company overage in FY 18, four of them growing double digits. Strong deal wins and a good pipeline positions us very well in the new fiscal.
Rajesh Gopinathan, CEO and MD
As customers move forward in their Business 4.0 journeys, TCS is helping them leverage digital technologies to drive their growth and transformation agendas. The multiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives. By pioneering methodologies like the Machine First Del/very Model (MFDMrM) and Location Independent Agile, we are upholding the spirit of innovation and leading change that has been a hallmark of res' fifty year history.
TCS Q4 results 2018: Consolidated EBIT at Rs 8,147 crore vs Rs 7787.8 crore QoQ
TCS Q4 results 2018: Consolidated PAT at Rs 6,904 crore vs Rs 6531 crore, up 5.7 per cent QoQ
TCS Q4 results 2018: Consolidated revenue from digital services came in at 23.8 per cent
TCS Q4 results 2018: Revenue growth stood at 2 per cent in constant currency terms
TCS Q4 results 2018: Consolidated dollar revenue came in at $4,972 million
TCS Q4 results 2018: Kotak Securities on Tata Consultancy Services
Net profit growth is muted on yoy comparison due to completion of buyback that has impacted other income. EPS growth is higher at 6% yoy. We expect investor focus on (1) demand outlook, especially in BFS vertical (2) ramp-up timeframe of recently won large deals, (3) EBIT margin outlook in light of ramp-up of recently won large deals, and (4) impact of the US tax code.
TCS Q4 results 2018: Kotak Securities on Tata Consultancy Services
We expect constant-currency (c/c) revenue growth of 1.3% and cross-currency tailwind of 130 bps. Growth will be aided by ramp-up of some of the deals won in 2HFY18. Expect EBIT margin to recover 25 bps driven by operational efficiency and benefits of INR depreciation against non-USD currencies.
TCS Q4 results 2018: Tata Consultancy Services to begin the #TCSQ4 press conference soon, says TCS on Twitter.
TCS Q4 results 2018: Tata Consultancy Services opens North America Insurance Hub in Iowa
Tata Consultancy Services plans to expand its 'goIT' and 'Ignite My Future in School' programmes into Cedar Rapids in 2018 and beyond to engage with students and teachers to pursue computer science education and digital skills.
TCS has invested nearly $3 billion in the US over the past three years and is among the top two job creators in IT services in America, the statement said.
TCS Q4 results 2018: Tata Consultancy Services opens North America Insurance Hub in Iowa
"Iowa is proud to welcome the TCS North America Insurance hub to Cedar Rapids. This move is a positive one, not only for the local business environment, but also for our state's leadership on the national stage in the insurance industry," Iowa Governor Kim Reynolds said.
As part of the over USD 2 billion deal, TCS will now administer Transamerica's life insurance, annuity, supplemental health insurance, and workplace voluntary benefits products, and manage the administration of more than 10 million policies.
TCS Q4 results 2018: Tata Consultancy Services opens North America Insurance Hub in Iowa
Tata Consultancy Services (TCS) said it has opened North America Insurance hub for business operations in Cedar Rapids, Iowa. The move, part of a multi-year deal between TCS and Transamerica announced in January this year, will transform the administration of Transferal's US insurance and annuity business lines, TCS said in a statement. It will also accelerate the enhancement of Transamerica's digital capabilities and modernise its platforms to service all lines of its business customers, the statement added.
TCS Q4 results 2018: Track December quarter data
Tata Consultancy Services (TCS) added 12,534 employees (gross) in the December 2017 quarter, taking its total headcount to 3,90,880 people.
TCS Q4 results 2018: Track December quarter data
TCS' digital revenue saw an increase of about 40 per cent year-on-year and accounted for 22.1 per cent of the company's revenues. During Q3 FY18, TCS saw its IT attrition rate (LTM) coming down 0.2 per cent sequentially to 11.1 per cent.
TCS Q4 results 2018: Track December quarter data
Tata Consultancy Services (TCS) declared a dividend of Rs 7 per share in Q3FY18.
TCS Q4 results 2018: Track December quarter data
Tata Consultancy Services (TCS)'s net profit fell 3.6 per cent to Rs 6,531 crore in the December 2017 quarter. The Mumbai-headquartered company had posted a net profit of Rs 6,778 crore in the October-December quarter of the previous fiscal, the company said in a BSE filing. Its income from operations during Q3FY18 stood at Rs 30,904 crore, up 3.9 per cent from Rs 29,735 crore in the year-ago period, as per Indian Accounting Standard (Ind-AS).
TCS Q4 results 2018: Nirmal Bang Institutional Equities on Tata Consultancy Services
TCS, in its 3QFY18 call, sounded optimistic about 2018, stating that problems that were plaguing a number of its verticals and geographies are behind it. The optimism also stemmed from the general improvement in macro-economic outlook in the developed world, especially in the US. TCS, however, did not want to give any specific numerical or even qualitative commentary on how good the year will be because of problems with a part of its revenues – from the US BFS space.
TCS Q4 results 2018: Nirmal Bang Institutional Equities on Tata Consultancy Services
We have factored in 1.5 per cent QoQ CC revenue growth considering that Q4 tends to be a seasonally weak quarter. All major currencies including the Euro, UK Pound, JPY, AUD, BRL and AUD have appreciated against USD in 4QFY18, which we believe, will lead to ~150bps cross-currency tailwind, thereby resulting in revenue growth of 3.0% in USD terms. We, however, believe that appreciation of the INR against the USD will offset some cross-currency gains leading to a 2.6 per cent growth in INR terms.
TCS Q4 results 2018: IDFC Securities expects a steady Q4FY18
December is a weak quarter impacted by furloughs and we expect similar seasonality to play out this quarter too. The brokerage expects TCS/ HCL Technologies/Wipro to record sequential dollar revenue growth of 2.6 per cent, 2.6 per cent and 2 per cent, respectively.
Source: IDFC Securities Q4 preview report
TCS Q4 results 2018: Tune in at 5:30 pm to watch TCS' senior management announce the #TCSQ4 results
Source: TCS Twitter
TCS Q4 results 2018: TCS share price settles higher
TCS share price settled 1 per cent higher at Rs 3190.65 ahead of its March quarter results due later in the evening.
Mustafa Nadeem, CEO, Epic Research
Nifty ends flat having an inside day, which also looks to be a single candle - hanging man pattern, as indecisiveness mounts on 50 per cent juncture in short-term. Bank Nifty consolidated in a tight range of 150 odd points on the back of low volatility and weekly options expiry.
A Bullish Harami Cross pattern is seen in candlestick chart or an inside day since a previous candle, Black is followed by a Small candlestick which is completely inside the previous day. This signifies the attempt made by bears yesterday may have been failed by bulls as lower levels are kept intact and bulls may prevail in coming sessions.
Nifty in a rangebound sentiment between 10650 - 10500 in the very short term. A follow-up move is yet to be seen after a long bullish rally while any weakness can be taken by bears as an advantage in their favor. The 50 per cent retracement at 10650 is a decisive [point for this moment and sustaining these levels either side will give us a momentum. We suggest to continue with the momentum and utilize the dips in the range to create long for higher targets.
Market Update
The Sensex has so far touched a high of 34,478.82 points and a low of 34,358.91 during the intra-day trade. The BSE market breadth was bullish with 1,265 advances and 1,082 declines.
TCS Q4 results 2018: Segment-wise expectations by Prabhudas Lilladher
Dollar revenues to grow by 2.8 per cent QoQ (1.5 per cent constant currency growth). Traction in BFSI vertical (~32 per cent of total revenues) and Retail vertical (nearly 12% of total revenues) would be keenly watched.
EBITDA margin expected at 27.3 per cent and EBIT margin at 25.7 per cent for Q4FY18, both up by 50bps QoQ.
TCS Q4 results 2018: TCS midcap peer Mindtree posted a 28.8 per cent sequential rise in its net profit at Rs 182.2 crore in the March quarter against Rs 141.5 crore in December quarter. Revenue of the company came in at Rs 1,464 crore, a 6.3 per cent QoQ rise on a sequential basis. Net profit of the company jumped 87.50 per cent on a year-on-year basis as it saw better digital deal wins from clients. MindTree share price advanced 3 per cent, reacting to the numbers.
TCS Q4 results 2018: TCS share price extends gains
TCS share price was trading at Rs 3207.10, up 1.5 per cent on the BSE at 12:25 pm.
TCS Q4 results 2018: EPS upgraded by 3 per cent and increased multiple to 19x FY20E (17x earlier), 12% premium to INFY target multiple (in‐line with 3‐yr average premium) factoring higher growth visibility; NEUTRAL rating factors‐in the positives with target price of Rs 3,105, says HDFC Securities
TCS Q4 results 2018: Large deal wins, expansion of digital, recovery in key verticals and stable operating performance to support growth (9/10% rev/EPS CAGR over FY18‐20E), says HDFC Securities.
TCS Q4 results 2018: At 11:56 am, TCS share price was ruling at Rs 3197, up 1.2 per cent on the BSE.
Track live share price movement of Tata Consultancy Services
TCS Q3 results 2018: In the December quarter, Tata Consultancy Services (TCS) posted 3.94 per cent dip in consolidated net profit at Rs 6,545 crore from Rs 6,814 crore in the corresponding period of the previous year. However, the Q3FY18 net profit witnessed a sequential growth of 1.31 per cent as against net profit of Rs 6,460 crore in the preceding quarter.
TCS share price live today: Brokerage Motilal Oswal Securities has a neutral rating on the stock. The stock trades at 19.8x FY19E and 18x FY20E earnings, it said.
TCS Q4FY18 results: TCS share price live today
Tata Consultancy Services (TCS) share price was flat on Thursday ahead of IT major's March quarter results wherein it is expected to report a marginal dip in net profit quarter-on-quarter at Rs 6740 crore against Rs 6,545 crore reported in the December quarter of FY18. At 11:00 am, the stock was trading at Rs 3185.70, up 0.8 per cent on the BSE.
TCS Q4FY18 results: Key things to watch out for
Emkay Global lists following three things to watch out for in TCS Q4 results:
- Demand outlook for TCS especially in large BFSI clients
- OPM sustenance in narrow band despite declining growth and cost pressures
- Commentary on TCS Digital Business.
TCS Q4FY18 results: TCS is expected to report earning post market hours.
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