TCS Q3 profit rises 8.2%, revenue crosses $7Bn

MUMBAI, INDIA — India’s largest IT services company, Tata Consultancy Services (TCS), reported an 8.2% year-on-year rise in consolidated net profit at Rs 11,735 crore (US$1.42 billion) for the quarter ended December 31, 2023.
Meanwhile, its revenue grew 4% to Rs 60,583 crore (US$7.3 billion) during the period under review. In constant currency terms, TCS’ revenue rose by 1.7%.
“Our strong performance in a seasonally weak quarter buffeted by macroeconomic headwinds demonstrates the strength of our business model,” said TCS CEO K. Krithivasan.
TCS’ operating margin expanded 50 basis points year-on-year to 25% in Q3 FY24, while its net margin stood at 19.4% during the quarter.
The attrition rate moderated to 13.3% on a trailing 12-month basis as of December 31, 2023.
During the quarter, TCS also won multiple deals — including a partnership with financial market infrastructure operator SIX and contracts with pension scheme Nest and Standard Life Assurance Limited — worth $8.1 billion.
The United Kingdom and emerging markets, led by India, witnessed strong growth, while North America declined 3% due to macro headwinds.
TCS said it is committed to hiring from college campuses for the next year. “We have commenced our campus hiring process for the next year and see tremendous excitement among students,” the company said.
The company’s board announced an interim dividend of Rs 19 (US$0.23) per share, along with a special dividend of Rs 18 (US$0.22) per share for FY24.
Shares of TCS closed 0.6% higher at Rs 3,736.2 (US$45) apiece on the Bombay Stock Exchange ahead of its Q3 earnings announcement.
TCS is ranked #51 in the 2023 Time Doctor OA500, an objective index of the world’s top 500 outsourcing companies. The 2024 edition of the OA500 will be released next month.