TCS’ Q3 net rises 2% to Rs 11,058 cr
Board announces 3rd interim dividend of Rs9 and a special dividend of Rs18; Workforce at 603,305 as on Dec
image for illustrative purpose
Sustaining Growth
- Double-digit growth in emerging markets
- Energy, resources and utilities, mfg, and life sciences & healthcare supported topline
- Operating margin rose by 50 bps to 25%
- Order book at $8.1 bn
Bengaluru: IT major Tata Consultancy Services (TCS) on Thursday reported a largely inline Q3 performance with improvement in revenue and operating margin. Its large deal momentum remained strong though fall in headcount continued in the third quarter ended December.
In the December quarter, TCS reported a two per cent year-on-year (YoY) growth in its consolidated net profit for the quarter to Rs11,058 crore. Its revenue increased by four per cent to Rs60,583 crore during this period.
In dollar term, revenue stood at $7.28 billion, which was a rise of 1.7 per cent in constant currency term over the same period of last fiscal.
The company’s order book remained strong with a total order book of $8.1 billion in the third quarter. Despite a traditionally weak quarter coupled with macroeconomic headwinds, the company said its strong execution led to better performance in the third quarter.
“From our perspective, situation has not changed much. There is certain optimism due to interest rate cuts, but it has not resulted in any investments yet. It may happen in coming quarters. We are seeing strong deal momentum across markets resulting in a solid order book providing visibility into our long-term growth. We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area,” K Krithivasan, Chief Executive Officer and Managing Director of TCS said in the post results press conference.
TCS’ operating margin stood at 25 per cent, 70 basis points improvement over the past quarter. The company had to provide one-time legal charge of $125 million during the quarter.
“Situation has not deteriorated as compared to last quarter. Our qualified deal pipeline has improved as compared to previous quarters. We are on course with the BSNL 4G/5G network roll out. We are making good progress in upskilling our employees in Generative AI through our AI playground platform,” N Ganapathy Subramaniam, Chief Operating Officer at TCS said.
Among verticals, growth was led by the energy&utilities vertical which grew 11.8 per cent, whilemanufacturing grew 7 per cent and life sciences grew 3.1 per cent. However, BFSI (banking, financial services & insurance) saw a fall of 3 per cent, while technology & services witnessed a degrowth of 5 per cent.
Among geographies, the United Kingdom performed better for the company with 8.1 per cent growth, while continental Europe saw a growth of 0.5 per cent during this period.
