Tata Consultancy Services first quarter net profit dips 5.8 per cent to Rs 5,950 crore

Software major Tata Consultancy Services (TCS) on Thursday announced the first quarter ended financial results on June 30, 2017. The company reported net profit of Rs 5,950 crore, a drop of 5.8 per cent from Rs 6,318 crore during the same period last year.

In the fourth quarter of FY17, the company had reported a net profit of Rs 6,622 crore. Hence, the net profit in Q1FY18 declined by 10% from Q4FY17.

The company's net income in first quarter FY18 stood at Rs 5,945 crore, a decline of 5.9% on year-on-year basis and 10% on quarter-on-quarter basis. The revenue stood at Rs 29,584 crore. The operating margin during the quarter was 23.4%. 

Commenting on the performance of the company, Rajesh Gopinathan, CEO & MD, TCS, said, "We have seen steady growth across industries in Q1. Robust volumes from major markets driven by good client additions across revenue bands and accelerating Digital adoption among customers have given us the right start to the year. 

The total employee strength at the end of Q1 was 3,85,809 on consolidated basis with gross addition of 11,202 and net addition of 1,414 employees during the employees. The total attrition rate was at 12.4% including BPS, with IT attrition at only 11.6%.  The shares of the company closed at Rs 2444.05 per piece, up 0.20% or Rs 4.95 on BSE.