(Adds details on results, company comments)
By Sankalp Phartiyal
MUMBAI, April 18 Tata Consultancy Services Ltd
, India's biggest software services exporter, reported a
slightly smaller than expected rise in fourth-quarter earnings
on Tuesday, but was confident of demand growth in some of its
major focus areas.
TCS, part of the Tata Group - India's largest conglomerate,
expects a robust pipeline of projects in automation and cloud
services, its chief operating officer N. Ganapathy Subramaniam
told a news conference following the earnings release.
The results come as India's more than $150 billion software
services sector faces uncertainties over visa rules in its
biggest market, the United States.
U.S. President Donald Trump is expected to sign an executive
order on Tuesday directing federal agencies to recommend changes
to the H-1B visa program.
Any change in the temporary visa program for skilled workers
could increase costs for companies such as TCS. The visa program
is used by Indian software service companies to fly engineers
and developers to the United States temporarily to service
"We are competitive and as long as the regimes are broadly
equal for everyone we don't see our relative competitiveness
actually going down," TCS Chief Executive Rajesh Gopinathan, who
took over the top job in February, told the news conference.
TCS's consolidated net profit rose 4.2 percent to 66.08
billion rupees ($1.02 billion) in the three months to March 31,
from 63.40 billion rupees in the year-ago period.
Analysts had, on average, expected a consolidated profit of
66.62 billion rupees, according to Thomson Reuters data.
TCS, which reported its first quarterly earnings under new
CEO Gopinathan, said revenue rose 4.2 percent year-on-year to
296.42 billion rupees.
"TCS's weak revenue performance in U.S. and financial
services on the back of Infosys commentary will certainly dent
confidence on pick up in spending in the financial services
space in fiscal 2018," said brokerage firm Emkay in a note to
clients, referring to the year ending in March 2018.
Infosys, the No. 2 Indian player in the sector,
reported quarterly results last week. It forecast revenue growth
of 6.5-8.5 percent in constant currency terms this fiscal year,
a guidance some analysts saw as disappointing.
For the full year to end-March, TCS said its digital revenue
including from cloud, automation, analytics and internet of
things (IoT) grew 29 percent. The company said in a statement it
saw "double digit" percentage growth in all its business sectors
except banking and financial services, retail and hi-tech.
($1 = 64.6250 Indian rupees)
(Reporting by Sankalp Phartiyal; Writing by Promit Mukherjee;
Editing by David Evans and Mark Potter)