TCS Q4 FY16 results out! Revenue growth marginally beats estimates

Tata Consultancy Services has surpassed analyst expectations for the first time in seven quarters, with its fourth-quarter revenue rising 1.5%.
India's largest IT services company reported revenue of $16.5 billion, up 11.9% in constant currency terms.

Nasscom had estimated that the industry grew 12.3% in constant currency in FY16.

TCS' performance comes at the time when Bangalore-based Infosys returning to fast growth.

On Friday, Infosys said its FY16 revenue grew 13.3% in constant currency. This is the first time since 2012 that Infosys has beaten TCS in terms of annual growth.

Infosys also forecasted FY17 growth of 11.5-13.5% in constant currency. Nasscom expects the industry to grow 10-12% in that same period. TCS does not give guidance.

TCS' fourth-quarter revenue grew to $4.21 billion. The company reported a net profit of $938 million for the same period.

The Mumbai-headquartered company said its margin contracted 4 basis points sequentially to 22.3%. In the company's margin had taken a hit in the third quarter as it booked costs related to the Chennai floods in December.

(Image credits: FInancial Express)