TCS Q4 FY16 results out! Revenue growth marginally beats estimates

TCS Q4 FY16 results out! Revenue growth marginally beats estimatesTata 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)