TCS Q3 net profit grows 8.2% to ₹11,735 cr. despite headwinds

Tata Consultancy Services Ltd. (TCS) reported third quarter ending December 31, 2023 net profit grew 8.2% to ₹11,735 crore as compared with the year earlier period due to strong double-digit growth in emerging markets led by India.

Tata Consultancy Services Ltd. (TCS) reported third quarter (ending December 31, 2023) net profit grew 8.2% to ₹11,735 crore as compared with the year earlier period due to strong double-digit growth in emerging markets led by India.

This is despite a seasonally weak quarter and the global economic situation on the ground remaining unchanged, its CEO said.

The company’s revenue during the quarter increased 4% year-on-year (YoY) to ₹60,583 crore and grew 1.7% YoY in Constant Currency.

The company reported net margin of 19.4%. The board has announced a dividend of ₹27 per share including ₹18 as special dividend.

K Krithivasan, Chief Executive Officer and Managing Director, said “Our strong performance in a seasonally weak quarter buffeted by macro-economic headwinds, demonstrates the strength of our business model with a well-diversified portfolio and a customer centric strategy.”

“Though the situation on the ground has not improved, we are seeing strong deal momentum across markets resulting in a solid order book providing visibility into our long-term growth. We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area,” he said.

During the quarter the company had a one-time charge of $125 million towards settlement of legal claims. The total claim was $140 million.