Tata Consultancy Services (TCS) on Thursday posted a net profit of Rs 6,317 cror

e on sales of Rs 29,305 crore in the June quarter, beating the Street's estimate
s. This is the second time when TCS surpassed profit estimates, after earlier mi
ssing estimates for six straight quarters.
TCS' profitability in the June quarter was driven by lower-than-expected drop in
margin and currency gains, analysts said. India's biggest IT services outsource
r's EBIT or operating margin slipped to 25.1 per cent in Q1 versus 26.1 per cent
in March quarter on account of salary hikes.
TCS' revenue in dollar terms was slightly below estimates at $4,362 million. Rev
enue growth in dollar terms was 3.7 per cent sequentially, while in constant cur
rency, TCS posted a revenue growth of 3.1 per cent.
"Strong execution and accelerating customer adoption of cloud, big data and anal
ytics has driven broad-based growth across key markets and industries," said N C
handrasekaran, CEO and MD of TCS.
TCS said 15.9 per cent of its Q1 revenue was from the fast-growing, high-margin
digital space. The company added six new clients in the $20 million-plus band, w
hile four new clients were added in the $50 million-plus band.
TCS said it posted incremental revenues of $155 million in Q1, the highest in se
ven quarters, on account of robust growth across core markets.
TCS added a total of 17,792 employees in the June quarter, with net additions at
8,236. The attrition rate declined for the third straight quarter, it added.
TCS also announced a dividend of Rs 6.50 per share for shareholders. TCS shares
closed 1.16 per cent higher at Rs 2,521.90, outperforming the broader Nifty that
closed 0.53 per cent higher.