TCS Q3 results: Profit growth flat at Rs 8,118 crore; firm announces Rs 5 dividend

NEW DELHI: IT major TCS on Friday met Street estimates as it reported 0.20 per cent year-on-year rise in profit at Rs 8,118 crore compared with Rs 8,105 crore net reported for the same quarter last year.

Analysts in an ET NOW poll had estimated the number at Rs 8,189 crore.

Revenue for the quarter rose 6.7 per cent to Rs 39,854 crore compared with Rs 37,338 crore in the year-ago period.

In constant currency terms, revenue grew 6.8 per cent, while operating margin came in at 25 per cent.

Rajesh Gopinathan, CEO and MD, said: "We saw the sectoral trends of the first half of the year continued to play out in the third quarter. Our robust order book during the quarter reflects our ability to pitch innovative technology solutions to address the business needs of different stakeholders in the enterprise, and participate in our customers' enterprise-wide transformation initiatives. This is also helping deepen and broaden our customer relationships, and make the business more resilient."

The IT firm announced an interim dividend of Rs 5 per share for the quarter. The record date for the dividend is set as January 25, while the payment date is fixed at January 31.

During the quarter, segments such as life sciences and healthcare grew 17.1 per cent on a yearly basis. Manufacturing grew 9.2 per cent while communications and media at 9.5 per cent.

Among the geographies, growth was led by Europe (up 15.9 per cent) and Middle East and Africa (10.8 per cent) and the UK (up 7.5 per cent). Key geography North America grew 4.1 per cent, Asia Pacific was up 5.7 per cent, India up 6.4 per cent and Latin America grew 6.2 per cent.

The company said that it added 22,390 employees year-to-date. A total of 93 per cent of the 30,000 freshers onboarded in the first half deployed in projects.