India’s largest information technology (IT) exporter, Tata Consultancy Services (TCS) reported a marginal 0.2% increase in its third quarter net profits to ₹8,118 crore due to lower other income.
BSFI and retail segments were challenging during the seasonally weak quarter, impacting the results.
The rise in profits were reported on 6.7% growth in revenues to ₹39,854 crore aided by currency gain.
Company’s operating margins stood at 25% with net margins of 20.4% during the quarter.
Commenting on the performance, TCS MD & CEO Rajesh Gopinathan said, “We saw the sectoral trends of the first half of the year continue 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.”
When asked about the impact of NCLAT judgement, Mr. Gopinathan said, “There will be no impact as the matter was referred to Supreme Court and it ordered a blanket stay.”
TCS announced interim dividend of ₹5 per share.
N Ganapathy Subramaniam, chief operating officer and executive director, said, “In a seasonally weak quarter characterized by furloughs across multiple industry verticals, we focused on execution, while continuing to invest for future growth. Having onboarded over 30,000 trainees in the first half of the year, we worked on driving up utilization in Q3 and had good outcomes. Our client metrics were also very good, with additions across most revenue buckets.”
Sector wise, Life Sciences & Healthcare grew at 17.1%, manufacturing grew 9.2% and communications and media grew 9.5%.
Geographically, Europe business grew 15.9%, North America and Asia Pacific grew 4.1% and 5.7% respectively. India grew 6.4% while Latin America grew +6.2%.
TCS shares on BSE closed down 0.91% at ₹2218, in a flat Mumbai market on Friday, valuing the company at ₹8.32 lakh crore, making it India’s second most valued after Reliance Industries.