TCS Q3 results: Net profit rises 7% to Rs 8,701 crore; firm declares Rs 6/share dividend

NEW DELHI: Tata Consultancy Services, India’s largest IT exporter when it comes to revenues, on Friday stated its profit rose 7.18 per cent YoY to Rs 8,701 crore in December quarter in contrast with Rs 8,118 crore within the corresponding quarter final yr.

Analysts at an ET NOW ballot had projected a revenue determine at Rs 8,600 crore.

Income for the quarter rose 5.42 per cent YoY to Rs 42,015 crore in contrast with Rs 39,854 crore in the identical quarter final yr. The corporate stated it was its strongest third quarter in 9 years.

The corporate additionally introduced a dividend on the fee of Rs 6 per share. Report date for a similar is January 16.

In greenback phrases, the income was up 5.1 per cent. On a relentless forex foundation, income rose 4.7 per cent, the IT main stated in a BSE submitting.

Working margin for the quarter got here in at 26.6 per cent in contrast with 25 per cent in the identical quarter final yr. Web margin stood at 20.7 per cent.

“Rising demand for core transformation companies and robust income conversion from earlier offers have pushed a robust momentum that helped us overcome seasonal headwinds and put up one in every of our greatest performances in a December quarter. We’re coming into the brand new yr on an optimistic observe, our market place stronger than ever earlier than, and our confidence strengthened by the continued energy in our order e-book and deal pipeline,” stated Rajesh Gopinathan, Chief Govt Officer and Managing Director, TCS.

TCS, as has been the case traditionally, didn’t provide any steerage. December normally is a seasonally weak quarter for IT companies on account of furloughs and decrease working days. Nonetheless, the administration of the corporate stated TCS has had wholesome deal closures and the expansion has been broad based mostly on a sequential foundation.

All verticals confirmed good sequential development, led by manufacturing (+7.1 per cent), BFSI (+2 per cent), life sciences and healthcare (+5.2 per cent), communications & media (+5.5 per cent) and retail and CPG (+3.1 per cent). On a YoY fixed forex foundation, life sciences and healthcare continued to develop in double digits at 18.2 per cent. BFSI (+2.4 per cent) and expertise & companies (+2.4 per cent) additionally moved into optimistic territory.

“Robust development throughout all our verticals, and operational advantages from our SBWS mannequin allowed us to put up the best working margin within the final 5 years, even after rolling out a wage improve this quarter. We additionally had an all-time excessive money conversion in Q3. This and our robust steadiness sheet place us very strongly to grab the alternatives that the present market affords, and extra intently associate our prospects of their development and transformation journeys,” stated V Ramakrishnan, Chief Monetary Officer, TCS.

The corporate added 15,721 staff throughout the quarter. IT Providers attrition fee dipped to a brand new all-time low, at 7.6% LTM (final twelve month), the corporate stated.

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