TCS Q1 PAT down 4.5% at Rs 5,058 crore, revenue beats estimates

NEW DELHI: Tata Consultancy Services ( TCS), India's largest IT services exporter reported a Profit After Tax ( PAT) of Rs 5,058 crore versus Rs 5,297 crore, down 4.5% QoQ. This is above an ET Now Poll estimate of Rs 4,902.3 crore.

The revenues came in at Rs 22,111 crore versus Rs 21,551 crore, up 2.6% QoQ. The company's operating margin stood at 26.3%. The IT major will pay a special dividend of Rs 40 per share. TCS said that robust volumes, healthy growth across verticals aided growth.

TCS first-quarter revenue rose 5.5% sequentially, beating market expectations. The first-quarter was expected to be strong, as the first half of the year is typically does better than the second half. The National Association for Software and Services Companies has said it expects industry growth to clock in at 13-15% for the current financial year.

TCS as already said it expects to beat that target as it holds on to its pole position in the IT industry. For the quarter ended June 31, TCS reported revenue of $3.69 billion, up 5.5 percent sequentially. The Mumbai-based software services exporter's profit fell 2% to $845 million, hurt by a charge due to depreciation.

The company took a one-time charge of $29 million in the quarter.

The stock closed at Rs 2381.10, down 0.84% on the Bombay Stock Exchange. It hit an intraday high of Rs 2428.75 and a low of Rs 2376.05.

The company had reported less than 1% sequential growth in the business during the two quarter to March 2014 from the North American market, where it earns more than half of the revenue. Investors will be keen to see a shift in the slow growth trend.
With inputs from ET Bureau.