TCS Q1 earnings in 5 charts

Rajesh Gopinathan chief executive officer of Tata Consultancy Services speaks to shareholders during the TCS annual general meeting in Mumbai on June 16

Rajesh Gopinathan chief executive officer of Tata Consultancy Services speaks to shareholders during the TCS annual general meeting in Mumbai on June 16

The operating margin during the quarter was 23.4%.

Gopinathan, however, said that TCS had "excellent wins across all markets and have a good deal pipeline across industries that positions us well for growth in FY18". We have trained 2,15,000 employees trained of digital. The revenue stood at Rs 29,584 crore.

"The decline in top line and bottom line performance by TCS in the current quarter is reflective of current macro economic circumstances of uncertainty, currency fluctuations and shrinkage in IT spending on large global transformational projects, and can not be considered unexpected in its entirety", said Sanjoy Sen, Doctoral Research Scholar, Aston Business School, UK. "On top of that, we've had [a] 150-basis-point impact from our wage increments, which were at ₹450 crore".

V. Ramakrishnan, chief financial officer, said: "During the quarter high currency volatility including sharp rupee appreciation against the dollar resulted in Rs. 650 crore loss in reported revenues".

Cognitive Business Operations saw over 5 per cent quarter-on-quarter (Q-o-Q) growth.

TCS said that its total employee strength at the end of June quarter was 3.85 lakh with gross addition of 11,202 and net addition of 1,414 during the quarter.

Asked if the big ticket deals will keep coming down, Gopinathan said there is no "material change" in deal sizes and they are also witnessing an increase in the contract sizes in the digital space. TCS is looking to consolidate its operations in Uttar Pradesh and the current Lucknow workforce will shift its operations to Noida and Varanasi.

As 82 per cent of the company's revenue comes from major markets like Americas, Britain, Europe and Australia, its annuity-based income is less volatile to currency fluctuation.

Mukherjee said the number of United States visa applications were the same as previous year, when it had come down in the wake of rising protectionism in that market.

Tata Consultancy Services (TCS) is set to shut down its operations in Lucknow and employees at the facility were reportedly told about it by their team leaders on Wednesday, July 12. But he was quick to assert the company will not sack any employee. We don't know about the company's strategy, but if the decision is avoidable it should be taken back.

It has carried out similar exercise in Chennai as well, he said, adding such exercises help in training and experimentation. The shares of the company closed at Rs 2444.05 per piece, up 0.20% or Rs 4.95 on BSE. This is the first time in three years that TCS has reported a drop in the overall headcount.

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