TCS reports soft Q3 in-line with street estimates

India’s largest software service provider Tata Consultancy Services posted third quarter result of FY18 on Thursday. The consolidated results for the quarter were largely in-line with street estimates. Revenue for the quarter came close to the estimated figure of Rs. 30,960 crores. Also, EBITDA for the quarter came in-line with the estimated figure of Rs. 8,269 crores. Also, net profit for the quarter came in slightly higher than the estimated figure of Rs. 6,460 crores.

TCS reported consolidated revenue for the quarter at Rs. 30,904 crores, registering 1.19 per cent QoQ increase. During the quarter its BFSI vertical remained soft and was marginally lower by 2.1 per cent on a sequential basis. However, all other verticals posted positive growth on sequential basis.

Digital revenue stood at 22.1 per cent, representing 39.6 per cent yoy increase and 13.9 per cent sequential increase. During the quarter its BFSI vertical remain soft and was marginally lower by 2.1 per cent sequentially.

EBITDA for the quarter rose by 1.51 per cent QoQ to Rs. 8,287 crores with a corresponding margin remaining stable at 26.82per cent per cent. PAT for the quarter came in at Rs. 6,545 crores, QoQ increase of 1.32 per cent.

TCS won a contract worth USD 2 billion from the US-based life insurance and investment company. TCS will enable Transamerica to enhance its digital capabilities and simplify the services of over 10 million policies in a single integrated modern platform. In December, the company bagged US$ 2.25 billion outsourcing contract from television rating firm Nielsen. Moreover, the company's IT attrition fell 20bps to 11.1 per cent. The company also declared an interim dividend of Rs. 7 per equity share of Re. 1 face value.