IT major Tata Consultancy Services on Friday posted a 7.18 per cent year-on-year (YoY) rise in its December quarter (Q3FY21) profit at Rs 8,701 crore. The firm had posted a profit of Rs 8,118 crore in the same quarter last year.
On quarter-on-quarter (QoQ) basis, the profit grew 16.4 per cent from Rs 7,475 crore posted for the quarter ended September 2020.
The company’s revenue came in at Rs 42,015 crore, up 5.42 per cent YoY and 4.68 per cent QoQ. TCS’ revenue stood at Rs 39,854 crore in the corresponding quarter last year and Rs 40,135 crore in the preceding quarter of FY21. The revenue rose by 4.1 per cent QoQ and 0.4 per cent YoY in constant currency terms. In dollar terms, revenue grew at 5.1 per cent sequentially from $ 5.424 billion reported in Q2FY21. The firm said it was the strongest third quarter growth in 9 years
Further, the firm announced third interm dividend of Rs 6 per share. The Tata Group firm said it has fixed January 16 as the record date to determine the eligible shareholders.
Commenting on the Q3 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director of the company said: “Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline.”
The operating margin for Q3 grew 1.6 per cent YoY and 0.4 per cent QoQ to 26.6 per cent. Meanwhile, the net margin for the quarter under review stood at 20.7 per cent.
TCS’ consolidated headcount stood at 469,261 as of December 31, 2020 while its IT services attrition rate (LTM) was at 7.6 per cent, its lowest ever.
Segment-wise revenue distribution
All verticals showed good sequential revenue growth, led by Manufacturing (+7.1%), BFSI (+2%), Life Sciences and Healthcare (+5.2%), Communications & Media (+5.5%) and Retotil otnd CPG (+3.1%), the company said. On a YoY, constant currency basis, Life Sciences and Healthcare continued to grow in double digits at 18.2%. BFSI (+2.4%) and Technology & Services (+2.4%) also moved into positive territory, it added.