TCS Q3FY24 Results- Profit at Rs 11,058 crore, up 2% on-year; revenue beats estimates at Rs 60,583 crore

TCS Q3FY24 Results: Profit at Rs 11,058 crore, up 2% on-year; revenue beats estimates at Rs 60,583 crore

Tata Consultancy Services (TCS) on Thursday posted its third quarter earnings for FY24 with profit at Rs 11,058 crore, up 2 per cent in comparison to Rs 10,846 crore during the same period last year. The IT major recorded revenue from operations for the quarter ended December 31, 2023 at Rs 60,583 crore, up 4 per cent as against Rs 58,229 crore during the third quarter of FY23, surpassinge etimates. While the total income recorded during the quarter was at Rs 61,445 crore, total expenses incurred during the quarter came in at Rs 45,658 crore. According to a CNBC TV18 poll, TCS was expected to record Q3 profit at Rs 11,345 crore and revenue was expected at Rs 59,950 crore.

TCS board also declared a third interim dividend of Rs 9 and a special dividend of Rs18 per equity share of Re 1 each of the company. “The third interim dividend and the special dividend shall be paid on Monday, February 5, 2024, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Friday, January 19, 2024, which is the Record Date fixed for the purpose,” it said in the regulatory filing.

TCS’ segment performance during Q3

TCS said that the growth was led by energy, resources and utilities which grew by 11.8 per cent), manufacturing which grew 7.0 per cent, and life sciences & healthcare which posted growth of 3.1 per cent. The Consumer Business Group (CBG) grew -0.3 per cent, BFSI recorded growth of -3.0 per cent, Communications & Media posted -4.9 per cent and Technology & Services grew -5.0 per cent.

In terms of geographies, while regional markets grew 19.2 per cent, among major markets, the United Kingdom led with 8.1 per cent growth, Continental Europe grew 0.5 per cent, North America grew -3.0 per cent. In emerging markets, India led with 23.4 per cent growth, Middle East & Africa grew 16.0 per cent, Latin America grew 13.2 per cent, and Asia Pacific grew 3.9 per cent.

N Ganapathy Subramaniam, Chief Operating Officer and Executive 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.”

TCS’ R&D focus

As on December 31, 2023, the company said that it has applied for 7,852 patents, including 187 applied during the quarter, and has been granted 3,458 patents including 305 granted in Q3.

Samir Seksaria, Chief Financial Officer, said, “We are making the right investments in our people, innovation and infrastructure to differentiate ourselves and create long term value for all our stakeholders.”

TCS’ workforce and attrition rate

TCS’ workforce stood at 603,305 as on December 31st. The employee base, it said, is very diverse, with 35.7 per cent women and with 153 nationalities.

Year till date, TCSers have clocked 39.7 million learning hours, and acquired 3.7 million competencies including 515,000 high demand competences. “We are making good progress in upskilling our employees in Generative AI through our AI playground platform,” said N Ganapathy Subramaniam.

IT services’ attrition was at 13.3 per cent for the last twelve months. Milind Lakkad, Chief HR Officer, said, “The vibrancy and energy levels in our offices are increasing as more and more of our employees are back in the offices. We expect to be back to our normal operating mode by the end of the current fiscal year. Parallelly, attrition is trending down and at 13.3 per cent, is now in our range of comfort. We are 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.”