TCS rises 24.1% in Q3 net at 8,105 cr

Tata Consultancy Services (TCS), India's largest IT services company, on Thursday reported 24.1% rise in net consolidated profit at Rs 8,105 crore for the third quarter ended December 2018 compared to Rs 6,545 crore in the corresponding quarter last fiscal. Revenue during the quarter went up 20.8% to Rs 37,338 crore compared to Rs 30,904 crore for the same quarter a year ago.

The constant currency revenue growth was 1.8% quarter on quarter and 12.1% year on year, the company said in a statement. The operating margin at 25.6% expanded 0.4% yoy. The earnings per share at Rs 21.60 grew by 26.6% YoY.

The company has declared Rs 4 per share as third interim dividend. The record date is January 18 and payment date is fixed as January 24, the company said.

Commenting on the results, Chief Executive Officer and Managing Director Rajesh Gopinathan said the company is wrapping up 2018 with strong revenue growth of 12.1% in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies.

"The strong client metrics, industry-leading growth in digital services, a very strong order book and deal pipeline are all validations that customers recognise our differentiated capabilities and are picking us for their growth and transformation programs," he said.

He added that on a secular basis, large segments of the economy go through churn was driven by digital disruption, enterprises are responding with technology-powered strategies - as in algorithmic retailing or connected cars - creating a huge opportunity for services providers like TCS.

"Our investments in research and innovation, our deep domain and contextual knowledge, intellectual property and our collaborative approach to co-innovation, have been key to our participation in this opportunity. This quarter, we launched a new brand, TCS PaceT", embodying these capabilities and offering our customers a line of sight to success in a Business 4.0 world," he said.

During the third quarter, the company added 6,827 employees, bringing the total employee strength at the end of Q3 to 417,929 on a consolidated basis. The percentage of women in the workforce rose further to 35.8%, while the total number of nationalities represented grew to 151.

The company's shares ended the day's trading at Rs 1,888.15 on BSE.