Industry

TCS Q3 net profit rises 12.3% on clients’ long-term investments

TCS added a net of 28,238 employees in the quarter, while the attrition rate stood at 15.3%.   | Photo Credit: JIGNESH MISTRY

Tata Consultancy Services said consolidated net profit for the third quarter ended December grew 12.3% to ₹9,769 crore backed by strong broad-based growth across verticals and markets.

Its net margin for the quarter was at 20% the company said in a filing with stock exchanges.

Revenue grew 16.3% to ₹48,885 crore. TCS, India’s largest IT services company, said it had hit the $25-billion revenue mark on a calendar year basis on the back of strong growth over the last four quarters .

The board recommended the year’s third interim dividend of ₹7 per share. It also approved a proposal for buy-back of shares amounting to ₹18,000 crore at ₹4,500 per share. “While mapping out [customers’] innovation and growth journeys, we are also helping them execute new-age operating model transformations to support those journeys,” said MD and CEO Rajesh Gopinathan.

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said “We continued our focus on growing organically and on developing the talent, methodologies, and toolkits for an ever-evolving technology landscape.”

CFO Samir Seksaria said sustained investments in talent had helped ‘power strong growth despite a challenging supply environment’. “We have exercised various operating levers in Q3 to mitigate the higher costs and manage our employee expense,” he added.

During the quarter, the company added a net of 28,238 employees and attrition stood at 15.3%.

All industry verticals grew in the ‘mid to high teens’. Growth was led by the retail and CPG (20.4%), BFSI (17.9%) and the manufacturing vertical (18.3%) verticals.

Technology and services grew 17.7%, life sciences and healthcare, 16.3% and communications and media grew +14.4%.

Among major markets, growth was led by North America (18%) and Continental Europe (17.5%).

Among emerging markets, growth was led by Latin America (+21.1%) and India (+15.2%), followed by Middle East & Africa (+6.9%) and Asia Pacific (+4.3%).

The quarter witnessed a clear trend of enterprises investing in technology initiatives for longer term growth, TCS said. The momentum for cloud adoption had continued unabated, it added.


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Printable version | Jan 12, 2022 11:10:06 PM | https://www.thehindu.com/business/Industry/tcs-q3-net-profit-rises-123-on-clients-long-term-investments/article38258518.ece

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