India’s IT bellwether, Tata Consultancy Services (TCS) has announced its Q3 results. The IT firm has reported improved profit numbers in October-December quarter. TCS has reported Rs 8,105 crore profit, recording a 24.3% rise in Year-on-Year (YoY) growth. The IT firm has come a long way under the leadership of the new TCS CEO Rajesh Gopinathan.
TCS Q3 Results: Profit jumps 24% YoY to Rs 8,105 crore profit
In a press release, Gopinathan said, “We are wrapping up 2018 with a strong revenue growth of 12.1 per cent in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies.”
For TCS, digital business has been a leading factor behind its growth. The company is generating increasing amount of revenue from cloud computing, automation, and data analytics. As clients are implementing these technologies at an enterprise level, TCS has observed a significant growth in revenue from these areas.
The digital technologies contribute to 30.1% of TCS’s overall revenue. The early adoption of these technologies has helped TCS in gaining edge over competition. The experience has helped TCS in moving faster from the pilot stage to final product stage. TCS has also announced an interim dividend of Rs 4 per share.
Indian IT firms are facing stiff competition in the international markets. The clients in the western markets are preferring the onsite hiring route, which is adding to sub-account expenses for IT firms. The crunch in the supply side at onshore and offshore location is causing dent in the margin.
Here are important highlights from TCS Q3 results:
•TCS reported revenue of Rs 37,338 crore, recording 20.8% Year-on-Year growth.
•The growth in terms of constant revenue stands at 1.8% for Quarter-on-Quarter and 12.1% for Year-on-Year.
•The company reported Rs 21.60 as earnings per share.
•Net cash reported from operations is Rs 8,682 crore.
•Net cash profit reported for Q3 is Rs 8,105 crore.