Published: Fri, January 12, 2018
Business | By Max Garcia

TCS in focus after declaring Q3 result

TCS in focus after declaring Q3 result

Profits for the three months ended December 31 rose to Rs 5,129 crore from Rs 3,708 crore for the year-earlier period, Infosys, which counts JP Morgan Chase, Bank of America, Citigroup, Vodafone, BP Plc and Johnson Controls among its clients, said in a press release on Friday. And lastly, net profit for the quarter came in 42.12% higher than the estimated figure of Rs. 3609 crores.

In terms of growth, Infosys growth will remain lackluster for the next 2-3 quarters.

For the third quarter, revenue in constant currency was up 0.8% on quarter, and 5.8% year on year.

TCS on Thursday posted a 1.3 per cent quarter-on-quarter (QoQ) increase in net profit at Rs 6,531 crore. Besides, it has maintained its 2017-18 operating margin range guidance at 23-25 per cent. ".Our Q3 performance is strong". In dollar terms, the brokerage expects Infosys to post revenue of $2,747 million in Q3 - up 0.7 per cent quarter-on-quarter and 7.7 per cent year-on-year. "Our cash generation continued to be robust during the quarter." said M.D. Ranganath, CFO.

Highlighting the emergence of technology in terms of Artificial Intelligence (AI), Machine Learning, Internet of Things (IoT), Salil said Infosys is progressing towards stability and is "ready to serve clients in the new areas of demand". EBITDA margin for the quarter stood at 27.07%.

Based on the recommendations of the Nomination and Remuneration Committee, the board at its meeting held on December 2, 2017 appointed Salil Parekh as the Chief Executive Officer and Managing Director of the Company with effect from January 2, 2018 for a period of 5 years, subject to the approval of shareholders and other regulatory requirements. The company had signed an Advance Pricing Agreement with the US IRS this week, resulting in an effective tax rate of about 100 basis points lower going forward.

The company bought back shares worth Rs 13,000 crores.

In accordance with the APA, Infosys has reversed tax provisions of approximately US$ 225 million made in previous periods which are no longer required (both under International Financial Reporting Standards and Indian Accounting Standards). Europe grew by 5.9 percent sequentially; and 4.7% in constant currency.

Like this: