TCS Q3 net profit up 8.2% at Rs11,735 cr; revenue at Rs60,583 cr
11 Jan 2024
Tata Consultancy Services (TCS) has reported a net profit of Rs11,735 crore for fiscal third quarter ended 31 December 2023, an 8.2 per cent increase year-on-year, on the back of rising demand for cloud-led services.
Revenue for the October-December 2023-24 quarter increased by 4 per cent YoY to Rs60,583 crore, with very strong double-digit growth in emerging markets, especially India which clocked a 23.4 per cent growth.
Demand for services was seen across sectors like energy, resources and utilities, manufacturing and life sciences and healthcare.
TCS said a sustained momentum in demand across service lines helped increase its consolidated net profit for fiscal third quarter ended 31 December 2023.
Operating margin for the quarter increased by 50 basis points to 25 per cent YoY while net margin increased by 19.4 per cent.
Order book at the end of the quarter stood at $8.1 billion, TCS stated in a release.
“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,” K Krithivasan, chief executive officer and managing director, said.
“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 roll out. We are making good progress in upskilling our employees in Generative AI through our AI playground platform,” N Ganapathy Subramaniam, chief operating officer and executive director, said.
With more and more employees back in the offices, TCS expects to be back to normal operating mode by the end of the current fiscal year.
Milind Lakkad, chief HR officer, said employee attrition is trending down and at 13.3%, is now in a comfortable range. TCS, he said, is 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,” he added.
With clients prioritising investments that accelerate cost reduction, drive business agility, TCS saw an increased demand for AI.Cloud, Cyber Security and Cognitive Business operations.
Region-wise, TCS said the UK led with 8.1 per cent growth, while Continental Europe grew 0.5 per cent and North America grew -3.0 per cent. In emerging markets, India led with 23.4 per cent growth, followed by Middle East & Africa (16.0 per cent), Latin America (13.2 per cent), and Asia Pacific (3.9 per cent).
