According to the report, the company's move to increase quarterly variable pay for its employees come in the backdrop of a similar trend observed at Infosys, which handed out more variable pay share to its employees as compared to the previous two years.
TCS ended FY18 with $19.09 billion in revenue, a 8.6% year-on-year growth, and 24.8% operating margin, better than 6.2% in 2016-17 but its profitability was 90 basis points lower than last year when it was 25.7%. Digital revenue grew 42.8 per cent year-on-year (YoY) to 23.8 per cent."Strong demand in digital across all industry verticals and large transformational deal wins have made this one of our best fourth quarters in recent years".
The Mumbai-headquartered company posted double-digit revenue growth in dollar terms in Q4 for the first time in the last 12 quarters. "The strong exit allows us to start the new fiscal on a confident note", Gopinathan, CEO and MD of TCS said commenting on the earnings. With TCS going for a bonus offering, the company's stock price will halve the day it becomes ex-bonus.More news: Expert Analysts Consensus Opinions for: Wells Fargo & Company
For the quarter under review, TCS reported a USD 185 million increase in dollar revenue, the highest ever quarterly growth in its history.
In recent years, TCS has been investing heavily behind new technologies including analytics, automation, cloud services, cyber security and internet of things. Both figures were however lower than industry body Nasscom's estimate of 7.8% growth a year ago. TCS's optimism is in contrast to the circumspection displayed by rival Infosys, which weathered top management churn past year.
All industry verticals - with the exception of BFSI - grew above the company average, with three verticals growing in double-digits YoY.More news: Listen to J. Cole aka kiLL edward's New Song 'Tidal Wave'
The Board of Directors of Tata Consultancy Services Ltd at its Meeting held today has recommended Bonus Issue of Equity Shares in the ratio of 1 (One) Equity Share of Re. In the past six months, TCS won deals worth over $6 billion, it offers to transform clients IT assets and improve efficiency and productivity. These firms are slashing their IT outsourcing budgets and shifting it to digital projects to take on the upstarts. "After discussing with our clients, we hear the concerns have bottomed out, we will see growth returning", said N G Subramanian, chief operating officer at TCS.
The IT major reported 5.71 per cent quarter-on-quarter and 4.48 per cent year-on-year rise in consolidated net profit at Rs 6,904 crore ($1.05 billion) for the January-March quarter, beating analysts' average estimate of Rs 6,798 crore.More news: Google Launches Grasshopper App To Help Beginners Learn Coding