TCS Announces Quarterly Results (1QFY21); Net Profit Down 13.5%

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TCS Announces Quarterly Results (1QFY21); Net Profit Down 13.5%
Fri, 10 Jul

TCS has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

TCS Quarterly Financials

No. of Mths
Qtr. Ending
3
Jun-19*
3
Mar-20*
3
Jun-20*
QoQ ChangeYoY Change
Net SalesRs m381,720399,460383,220-4.1%0.4%
Other incomeRs m16,7507,3805,980-19.0%-64.3%
TurnoverRs m398,470406,840389,200-4.3%-2.3%
ExpensesRs m281,350289,700282,980-2.3%0.6%
Gross profitRs m100,370109,760100,240-8.7%-0.1%
DepreciationRs m8,1709,5109,7602.6%19.5%
InterestRs m2,5702,5101,420-43.4%-44.7%
Profit before taxRs m106,380105,12095,040-9.6%-10.7%
TaxRs m24,85024,19024,5501.5%-1.2%
Profit after taxRs m81,53080,93070,490-12.9%-13.5%
Gross profit margin%26.327.526.2
Effective tax rate%23.423.025.8
Net profit margin%20.519.918.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter grew 0.4% on a year-on-year (YoY) basis. The expenses were up by 0.6% YoY during the same period.
  • The company's operating profit declined by 0.1% YoY during the quarter. Consequently, operating profit margins remained same and stood at 26.2% in 1QFY21.
  • Depreciation charges increased by 19.5% and finance costs declined by 44.7% YoY, respectively.
  • Other income declined by 64.3% YoY during the quarter.
  • Net profit for the quarter declined by 13.5% YoY. Net profit margins during the quarter declined from 20.5% in 1QFY20 to 18.1% in 1QFY21.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 4.1% on a quarter-on-quarter (QoQ) basis. The expenses were down by 2.3% QoQ during the same period.
  • The company's operating profit declined by 8.7% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 26.2% in 1QFY21 as against 27.5% in 4QFY20.
  • Net profit for the quarter declined by 12.9% QoQ, while net profit margins declined from 19.9% in 4QFY20 to 18.1% in 1QFY21.

To see how TCS has performed over the last eight quarters,please visit here.

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TCS Share Price Performance

Over the last one year,TCS share price has moved up from Rs 2,107.7 to Rs 2,203.6, registering a Gain of Rs 95.9 or around 4.5%.

Meanwhile, the S&P BSE IT Index is trading at Rs 15,724.0 (down 0.0%). Over the last one year it has moved up from 15,035.6 to 15,724.0, a gain of 688 points (up 4.6%).

Overall, the S&P BSE SENSEX is down 5.3% over the year.

Current Valuations

At the current price of Rs 2,203.6, the price to earnings (P/E) ratio of TCS stands at 26.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 9.4 times.

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