Q1FY20 Results: TCS posts muted numbers

TCS reported flat set of numbers for Q1FY20. The company's revenues increased 11.4 per cent YoY to Rs. 38,172 crore. On constant currency terms, revenue growth was 10.6 per cent YoY as margin narrowed due to higher employee costs.

The company's digital revenue grew 42.1 per cent YoY and comprised around 32.2 per cent of its revenue. TCS’s operating margin in the quarter was at 24.2 per cent. Net profit for the quarter stood at Rs. 8,131 crore, up by 10.8 per cent YoY.

The company recommended an interim dividend of Rs. 5 per share. The dividend shall be paid on Tuesday, July 23, 2019 to the equity shareholders of the Company as on record date July 17, 2019.

On segmental basis, Life Sciences & Healthcare vertical grew 18.1 per cent, while BFSI was subdued at 9.2 per cent, Retail & CPG at 7.9 per cent, Communications & Media at 8.4 per cent, Technology & Services at 7.8 per cent and Manufacturing grew 5.5 per cent. Geographically, the UK market saw biggest growth of 16 per cent, followed by India 15.9 per cent and Europe 15 per cent, North America 7.7 per cent, Asia Pacific 9.5 per cent, MEA 6.4 per cent and Latin America 6.4 per cent.

In response to the results, the stock of TCS opened at Rs. 2,081.00 per share on Wednesday. At 14:11 hours, it was trading at Rs. 2,108.95 per share, down by 22.50 or 1.06 per cent on the BSE.