TCS Q3 result: Tepid growth in revenue, profit to dividend announcement here are 5 key highlights

TCS Q3 result: Tata Consultancy Services (TCS) reported broadly in line earnings for the December quarter of the current financial year. The company's revenue grew 4 per cent year on year (YoY) while profit grew 2 per cent YoY. The company's operating margin improved by 50 bps to 25 per cent during the quarter under review which, as per the company, excludes the one time charge of $125 million towards the settlement of legal claim.

“Our strong performance in a seasonally weak quarter buffeted by macro economic headwinds demonstrates the strength of our business model with a well diversified portfolio and a customer centric strategy. 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," said K Krithivasan, Chief Executive Officer and Managing Director of TCS. Also Read: “The quarter saw us make significant progress in many projects of national importance, demonstrating our execution strength.

Our products and platforms had a strong quarter with new wins and go lives. The MCX platform is scaling well and processing record transaction volumes. We are on course with the BSNL 4G/5G network rollout. We are making good progress in upskilling our employees in Generative AI through our AI playground platform," said N Ganapathy Subramaniam, Chief Operating Officer and Executive Director of the company.

Also Read: Let's take a look at 5 key highlights of TCS' Q3FY24 scorecard: Revenue and profit TCS reported a 4 per cent YoY rise in its Q3 consolidated revenue from operations at 60,583 crore against 58,229 crore in the same quarter last year. Sequentially (quarter on quarter), the company's revenue inched up by 1.5 per cent against 59,692 crore in Q2FY24.

In constant currency (CC) terms, the company's revenue rose 1.7 per cent YoY. The company's consolidated profit in Q3 stood at 11,097 crore, up 2 per cent YoY against 10,883 crore in the same quarter last year. On a quarter on quarter (QoQ) basis, profit figures declined 2.5 per cent as the company's profit in Q2FY24 was 11,380 crore.

Dividend The company announced a dividend of 27 per share, including a special dividend of 18. The record date for the purpose is January 19, 2024, and the payment date is February 5, 2024. Industries The company said growth in Q3 was led by the energy, resources and utilities vertical which grew 11.8 per cent, manufacturing which grew 7 per cent and life sciences and healthcare which grew 3.1 per cent.

On the other hand, the consumer business group (CBG) degrew 0.3 per cent, BFSI degrew 3 per cent, communications and media degrew 4.9 per cent and technology and services degrew 5 per cent during the quarter. Markets Among major markets, the United Kingdom led with 8.1 per cent growth, TCS said. Continental Europe grew 0.5 per cent while North America degrew 3 per cent.

In emerging markets, India led with 23.4 per cent growth, Middle East and Africa grew 16 per cent, Latin America grew 13.2 per cent, and Asia Pacific grew 3.9 per cent. Regional Markets grew 19.2 per cent, TCS said. Human resources According to TCS' media release, its workforce stood at 6,03,305 as on December 31.

The employee base is very diverse, with 35.7 per cent women and with 153 nationalities. IT services’ attrition was at 13.3 per cent for the last twelve months. "Year till date, TCSers have clocked 39.7 million learning hours, and acquired 3.7 million competencies including 515,000 high demand competencies," said TCS.

"The vibrancy and energy levels in our offices are increasing as more and more of our employees are back in the offices. We expect to be back to our normal operating mode by the end of the current fiscal year. Parallelly, attrition is trending down and at 13.3 per cent, is now in our range of comfort.

We are committed to hiring from college campuses and growing talent organically. We have commenced our campus hiring process for the next year and see tremendous excitement among freshers to join TCS," said Milind Lakkad, Chief HR Officer, TCS. Livemint tops charts as the fastest growing news website in the world to know more.

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