TCS logs 12.3% yoy rise in Q3 PAT to Rs9,769cr as all verticals clock double-digit growth, constant currency growth at 4% sequentially

13 Jan 2022 , 11:02 AM

IT-giant, Tata Consultancy Services (TCS) garnered a 12.3% growth in consolidated net profit of Rs9,769cr for the quarter ending December 2021 (Q3FY22) period compared to a profit of Rs8,701cr a year ago same quarter. Consolidated revenue from operations increased by 16.3% to Rs48,885cr in Q3FY22 versus Rs42,015cr in a similar period of last year.

In constant currency, the revenue growth was at 15.4% yoy in the quarter under review. TCS posted a 4% quarter-on-quarter revenue growth in CC.

In the quarter, all verticals grew in the mid to high teens. Growth was led by Retail and CPG (20.4%), BFSI (+17.9%) and the Manufacturing vertical (+18.3%). Technology & Services grew +17.7%, Life Sciences and Healthcare grew +16.3% and Communications & Media grew +14.4%.

Among major markets, growth was led by North America (+18%) and Continental Europe (+17.5%) while the UK grew +12.7%. Among emerging markets, growth was led by Latin America (+21.1%) and India (+15.2%), followed by Middle East & Africa (+6.9%) and Asia Pacific (+4.3%).

The services sector’s Q3 witnessed a clear trend of enterprises investing confidently in technology initiatives for long term growth. There was broad-based growth across all services, led by Cloud, Cyber Security, Consulting & Services Integration and IoT & Digital Engineering.

Rajesh Gopinathan, Chief Executive Officer and Managing Director said, “Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers’ business transformation needs. Customers love our engagement model, our end-to-end capability, and our can-do approach to problem-solving. While mapping out their innovation and growth journeys, we are also helping them execute new-age operating model transformations to support those journeys.”

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: “We continued our focus on growing organically and on developing the talent, methodologies, and toolkits for an ever-evolving technology landscape. This, coupled with our contextual knowledge and the passion and commitment of thousands of TCSers enabled us to deliver cutting-edge solutions during the quarter and help our clients realize speed to value. We are also delighted to cross another important milestone in our journey, hitting the $25 billion revenue mark in CY 2021.”

TCS work strength stood at 556,986 with net headcount addition of 28,238 in the Q3FY22. The company’s LTM IT Services attrition rate was at 15.3% in Q3 of this fiscal which is the lowest in the industry.

Samir Seksaria, Chief Financial Officer, said: “Our sustained investment in our talent has helped us power strong growth despite a challenging supply environment. We remain focused on long term talent development as well as on tactical measures to mitigate the talent churn. We have exercised various operating levers in Q3 to mitigate the higher costs and manage our employee expense.”

Key highlights of Q3FY22 are:

• Strong Client Addition: 10 New $100Mn+ Clients (total: 58); 21 new $50Mn+ clients (total: 118)
• Net Cash from Operations at Rs10,853 crore ie 111.1% of Net Income
• Building a G&T workforce: 100K+ market relevant skills gained in Q3; 38K+ Contextual Masters identified
• Diverse and Inclusive: Women Employees Exceed 200,000; +68% growth in women at senior levels during 2016-21; 156 Nationalities represented

The company’s board has declared a third interim dividend of Rs7 per Equity Share of Re1 each of the Company. The third interim dividend shall be paid on Monday, February 7, 2022, 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 of Thursday, January 20, 2022, which is the Record Date fixed for the purpose.

At around 10.53 am, TCS was trading at Rs3878.20 per piece up by Rs20.95 or 0.54%. The stock has touched an intraday high of Rs3944.40 per piece.