TCS Q3 Result: Tata Consultancy Services (TCS), one of the leading IT service providers globally, has unveiled its financial results for the third quarter of the current fiscal year. The company reported a 4% year-on-year (YoY) increase in consolidated revenue, reaching ₹60,583 crore compared to ₹58,229 crore in the same quarter last year. In sequential terms, the revenue inched up by 1.5% from ₹59,692 crore in Q2FY24.
The Q3 consolidated profit stood at ₹11,097 crore, reflecting a 2% YoY growth from ₹10,883 crore in the corresponding quarter last year. However, on a quarter-on-quarter basis, the profit declined by 2.5% compared to ₹11,380 crore in Q2FY24.
“TCS showcased robustness in its operating margin, registering a 50 basis points improvement to reach 25% for the quarter. This improvement is reported excluding a one-time charge of $125 million linked to the settlement of a legal claim. The company’s leadership attributes this robust performance to its well-diversified portfolio and a customer-centric strategy, overcoming challenges in a seasonally weak quarter”.
K Krithivasan, Chief Executive Officer and Managing Director of TCS highlighted the strong deal momentum across markets and a solid order book, providing visibility into long-term growth. He emphasized the company’s prowess in Generative AI, stating, “We are leading the innovation and exploratory efforts for our customers in this area.”
N Ganapathy Subramaniam, Chief Operating Officer, and Executive Director mentioned significant progress in national projects, strong performances of products and platforms, and advancements in upskilling employees in Generative AI.
“Despite the macroeconomic challenges, TCS remains optimistic, backed by its diverse portfolio and strategic initiatives. The company also announced a dividend of ₹27 per share, including a special dividend of ₹18, with the record date set for January 19, 2024, and the payment date on February 5, 2024. TCS’s ability to navigate challenges and deliver steady results underscores its resilience in the dynamic IT landscape”.
