TCS to Wind up Operations in Lucknow, IT Professionals Job in Danger

TCS to Wind up Operations in Lucknow, IT Professionals Job in Danger

TCS to Wind up Operations in Lucknow, IT Professionals Job in Danger

Hurt by volatile currencies, TCS' net profit fell 10 per cent compared to the March quarter.

Rupee's appreciation of about 5% this year against the U.S. dollar has added to their woes as it made exports costlier.

India's top IT services company Tata Consultancy Services Ltd (TCS) is moving to capitalize on growth opportunities in areas such as life sciences and manufacturing, Chief Executive Rajesh Gopinathan said on Friday. While the scrip is up around 1.13 per cent or 26 points, 30-share index has gained almost 20 per cent or 5,324 points in the same period. The widely tracked dollar revenue of TCS came in at $4,591 million, up 3.1 per cent sequentially. The company said that the profits were significantly affected by the wage hike.

TCS added one client with annual billing of $100 million-plus and one with billing of more than $50 million in the June quarter, TCS said. "We have had excellent wins across all markets and have a good deal pipeline across industries that positions us well for growth in FY18".

India's $150-billion IT sector has always been one of its flagship industries but is facing upheaval in the face of automation, a failure to keep up with new technologies and US President Donald Trump's clampdown on visas.

V. Ramakrishnan, Chief Financial Officer, said, "During the quarter high currency volatility including sharp rupee appreciation against the dollar resulted in Rs 6.50 billion loss in reported revenues".

"For the long or medium term, our target continues to be the same but right now the focus is to ensure that the transition (under newer leadership team) goes smoothly; we stabilise into the new operating model and we maintain stable profitability for a future expansion in our margins", he said.

The total employee strength at the end of Q1 was 385,809 on a consolidated basis. Attrition rate of the company stood at 12.4% including BPS.

During Q1, TCS reorganised its service lines in Q1, adding new lines like cognitive business operations (grew by 5 percent QoQ) and digital transformation services, which have robust pipeline.

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