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IT services major, Tata Consultancy Services' (TCS) profit fell 2.5 percent sequentially to Rs 6,608 crore for the quarter ended March 31, 2017. The revenue saw a decline of 0.3 percent QoQ to Rs 29,642 crore.
The revenue growth was subdued in key segments like BFSI and Retail, where the growth during the quarter slipped 0.4 er cent and 3.0 per cent sequentially.
The only bright spot is the company's Digital revenue which stood at $ 3 billion for FY17 growing 29 per cent YoY. At end of Q4, Digital revenues were at 17.9 per cent with a sequential growth of 7.6 per cent.
Rajesh Gopinathan, CEO and MD said, “FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets. We added $1.4 billion dollars in constant currency revenues during the year and increased our digital revenues sharply as we helped our customers leverage the Digital economy. Our digital business grew at 29 per cent annually with most industries showing double digit growth as we steadily increased the number of customers across different revenue bands.”
“Our clients are looking for integrated offerings as they advance their Cloud agenda and we have a solid pipeline of deals across markets and industries. On the back of digital adoption, Agile, Automation and Cloud are the themes that we are going to market to drive efficiencies and predictable outcomes across our clients Infrastructure, Applications and Business Operations,” he added.
Segment wise, Communication & Media revenue grew 7.4 percent QoQ, followed by Hi-Tech and Travel & Hospitality which grew which grew 5.2 per cent and 3.6 per cent respectively. Life Sciences & Healthcare saw a growth of 3.1 per cent, Manufacturing 1.7 per cent, Energy & Utilities 1.4 per cent, while others revenues dipped 2.1 per cent.
Among major markets, India grew 9.1 per cent, while overseas, Continental Europe grew 7.1 per cent, followed by UK (4.1 per cent), MEA (2.1 per cent), APAC (1.9 per cent). Latin America revenue slid by 7.3 per cent and North America by 1.8 per cent.
Among service lines, Enterprise Solutions and Consulting crossed the $3 billion and Business Process Services crossed the $2 billion revenue milestones respectively. Driven by IoT and Industrial Internet solutions, Engineering services led the way with 17.4 per cent growth during the year while Infrastructure Services grew at 16 per cent followed by Assurance services with 12.5 per cent growth and BPS with 10.4 per cent.
TCS added 41 new clients in Q4, including 4 clients in $50 million+ revenue band and 1 in $100 million+ revenue band.
The attrition rate in IT services fell sharply at 10.5 percent in FY17 compared with 14.7 percent in previous financial year.