Tata Consultancy Services (TCS) put up a stellar show in the fourth quarter backed by a strong performance by the banking, financial services and insurance segments, while digital services maintained its growth momentum.

For the quarter ended March 31, 2019, TCS posted a net profit of Rs 8,126 crore, a 17.7 per cent growth over Rs 6,904 crore in the same period last year.

Analysts had expected the country’s largest IT services firm to report a bottomline of around Rs 7,900 crore. Revenues also topped projections at Rs 38,010 crore — a jump of 18.5 per cent over the year-ago period. This is the strongest revenue growth recorded by TCS in the last 15 quarters.

According to Rajesh Gopinathan, chief executive officer and managing director of TCS, the company’s order book during the January-March period was bigger than the previous three quarters.

“Despite the macro uncertainties ahead, our strong exit positions us very well for the new fiscal,” he said on Friday.

The Telegraph

The healthy performance by TCS was led by the crucial banking, financial services and insurance (BFSI) vertical, which posted a double-digit growth rate of 11.6 per cent in constant currency terms against 8.3 per cent in the preceding three months. Other segments such as retail, life sciences, energy and utilities, communication and manufacturing also contributed to the strong show, with their growth coming in the range of 9.9-21 per cent.

All the major markets of TCS showed a strong growth momentum.

The growth was the highest in UK at 21.3 per cent followed by the rest of Europe at 17.5 per cent. Other markets, too, did well: North America growing above 9.9 per cent, Asia Pacific at 11.5 per cent, India at 11.3 per cent and Latin America, over 16 per cent.

“Overall, it has been a picture-perfect year during which TCS fired on all cylinders,” he pointed out.

Gopinathan said TCS was well poised for the current year as all its verticals were performing well and there were no laggards.

Revenues for the year grew 19 per cent to Rs 146,463 crore. In dollars, revenues crossed $20 billion to hit $20.91 billion, a rise of almost $2 billion over the previous year. During 2018-19, revenues from digital services grew almost 51 per cent, accounting for around 29 per cent of its revenues. For the quarter, the growth was over 46 per cent.

“Double digit growth, higher quality of the incremental business and best-in-class execution capabilities have helped us expand our operating margin year-on-year,” said chief financial officer V. Ramakrishnan.