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,” said K Krithivasan, Chief Executive Officer and Managing Director of TCS.
“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,” he added.
Also Read: TCS Q3 revenue grows 4% YoY, Income rises 8%, dividend at ₹27 per share
“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.
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.
Also Read: TCS Q3 earnings: Board approves dividend of ₹27 per share
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.
Also Read: TCS Q3 Results: IT attrition rate drops further to 13.3% in third quarter; commences campus hiring
“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.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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Published: 11 Jan 2024, 04:47 PM IST