TCS Delivers Strong Q3; Revenue crosses $7 bn propelled by cloud demand and market share gains

Tata Consultancy Services (TCS) on January 9 reported a 10.98 percent increase in its consolidated net profit at INR10,883 crore for the quarter ended December 2022 (Q3FY23). The company had posted a profit of INR 9,806 crore in the year-ago period.

The consolidated revenue from operations came in at INR 58,229 crore, up 19.11 percent against INR 48,885 crore in the corresponding quarter of the previous fiscal.

The company also announced a dividend of INR 75 per share including INR 67 as a special dividend. The record date f or dividends is January 17 and the payment date is February 3, 2022.Order book for the quarter stood at $7.8 billion.

“We are pleased with our strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and the UK,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS. “The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust.”

TCS’ net headcount went down by 2,197 employees, the company said. Its last twelve-month IT Services attrition rate was at 21.3 percent.

“Improved productivity, currency support and abating supply side challenges helped expand our operating margin in Q3,” said Samir Seksaria, Chief Financial Officer, TCS. “This gives us greater confidence in our ability to steer our profitability towards our preferred range while continuing to invest in building newer capabilities to support our growth and market share gains.”