TCS Q3 net profit rises 2%, revenue up 4%
Tata Consultancy Services (TCS), the leading IT services company in India, announced a 1.96% increase in consolidated net profit, reaching Rs. 11,097 crore in the quarter ending December. This growth was achieved despite challenges in the BFSI and tech sectors and a continued slowdown in discretionary spending. TCS's consolidated revenue saw a 4% increase, rising to Rs. 60,583 crore during the three months, compared to Rs. 58,229 crore the previous year.
Vertical-wise growth
TCS said its growth was led by Energy, Resources and Utilities vertical which grew 11.8%. The Manufacturing vertical also posted positive growth at 7%, and Life Sciences and Healthcare showed an uptick of 3.1%. However, there were declines in the Consumer Business Group (0.3%), BFSI sector (3%), Communications & Media vertical (4.9%), and Technology & Services (5%). Regional markets grew 19.2%. Among major markets, the United Kingdom led with 8.1% growth, Continental Europe grew 0.5%, and North America grew 3%.
TCS board approves dividend of Rs. 9 per share
The IT major announced a third interim dividend of Rs. 9 per share and a special dividend of Rs. 18 per share. The company's EBIT margin expanded to 25%, up from 24.3% in the previous quarter. Earlier today, TCS shares closed at Rs. 3,726.70 on the BSE, up 0.37%. The stock is up 14.32% in the last six months and 11.77% since the last year.
Management's commentary on the earnings
TCS CEO and Managing Director K Krithivasan remarked on the performance, stating, "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." He also noted a strong deal momentum across markets is contributing to a solid order book. "We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area," Krithivasan added.
