TCS hits 52-week high on strong Q4 results

TCS hit 52-week high of Rs 3,287, up 3 per cent on market in early morning deals after the company reported announced a strong set of numbers in the March quarter (Q4) as well as for 2017-18, backed by all-round growth in key verticals and geographies, and digital services and solutions.

The Mumbai-headquartered company posted double-digit revenue growth in dollar terms in Q4 for the first time in the last 12 quarters. The management was confident of sustaining this growth rate in the coming quarters.

The company’s net profit and revenue in the quarter beat Street estimates, while margin growth was slightly below the industry’s expectations, owing to cross-currency volatility. In the March quarter, the company’s net profit stood at Rs 69 billion, a 4.7 per cent year-on-year growth rate and 5.71 per cent sequential growth. TCS’s revenues at Rs 320.75 billion grew 8.2 per cent y-o-y and 3.8 per cent quarter-on-quarter, backed by 2 per cent growth in volumes (billed man-hours in the quarter).

The IT major also announced a 1:1 bonus of shares and a dividend of Rs 29 a share, taking the total payout to shareholders at Rs 50 for the year. It has paid about Rs 260 billion to shareholders in dividends and bonuses in 2017-18.