Asia’s largest software services firm, Tata Consultancy Services Ltd (TCS) reported declining revenues and profit for the fourth fiscal quarter ending March’17. Over the past three months, TCS revenues stood at ₹29,642 crores ($4.45 billion), registering a fall of 0.3% compared to the previous quarter. In the previous quarter, TCS had filed revenues of ₹29,735 crores.

The profits for the IT solutions provider fell by 2.51%, eventually to ₹6,608 crore in the three months, compared to its past quarter revenues of ₹6,778 crores. However, profits for the company, when calculated on a year-on-year (YoY) basis shows an approximate rise by 4.2%, indicating its stability in the market amid the H-1B visa and internal restructuring issues.

Addressing the earnings call to its stakeholders, Rajesh Gopinathan, CEO and MD of TCS said,

FY17 was a year of broad-based growth amidst economic and political turbulence in our key markets. We added $1.4 billion dollars in constant currency revenues during the year and increased our digital revenues sharply as we helped our customers leverage the digital economy.

Our digital business grew 29% annually with most industries showing double-digit growth as we steadily increased the number of customers across different revenue bands.

Talking about the earning per share, the value plunged to ₹33.52 against ₹34.40 in the December’16 quarter. The board has passed a final dividend of ₹27.50, which will make the overall dividend payout for TCS to be around ₹5,418 crores. Though the company has flagged its win over home-rival Infosys through its revenues and sales figures, it was unable to please the shareholders with dividend announcements. Infosys has announced ₹13,000 crore for dividends in FY18.

On an annual basis, TCS brought in net profit of over ₹26,117 crore for the financial year 2016-17. It was up by 6.6 percent compared to ₹24,270 crore in the financial year 2015-16.

The company witnessed a falling revenue pattern across all its verticals, except communication, media, and technology. In its earning release, TCS mentioned that digital revenues for FY17 grew 29 percent. Thanks to the significant opportunities in cloud, automation, analytics and IoT, about 16.7%  of total revenues came from digital services for FY17.

At end of Q4, digital revenues were at 17.9% with a Q-o-Q growth of 7.6%. While banking and financial segment registered a decline of 1.6%, consumer business of TCS showed an anti-growth of  2.9%. The most affected business segment was TCS’ IT services sector division, which showed a 10.5% decline in growth.

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