TCS Ltd Q3 net up 12.27% at Rs9,769cr despite higher operating cost pressures

12 Jan 2022 , 07:40 PM

Tata Consultancy Services reported 16.35% growth in total revenues for the Dec-21 quarter on consolidated basis at Rs48,885cr. On a sequential basis, the revenues were up by 4.31%.

During the December 2021 quarter, saw 18% growth in North American revenues. During the quarter, TCS added 10 clients in the $100 million plus bucket and 21 clients in the $50 million plus bucket. Company has announced a buyback program of Rs.18,000 crore at a stock market price of Rs.4,500 per share.

In terms of sectoral growth, retail and CPG grew 20.4%, BFSI 17.9%, Manufacturing 18.3%, Technology and Services 17.7%, life sciences 16.3% and media 14.4%. In terms of market growth, North America represented growth of 18% while continental Europe grew at 17.55 while UK grew at 12.7%.

The Indian market also showed 15.2% growth in third quarter on a comparable yoy basis. In short the traction was across the board.

Operating profit grew 9.42% at Rs12,237cr with growth weakening due to operating costs pressure on travel, manpower and contracting. Operating margins narrowed by 159 bps yoy. Consolidated Profit after tax (PAT) for the Dec-21 quarter was up 12.27% at Rs9,769cr on the back of good traction in high value clients.

However, the impact of higher operating costs was felt in the bottom line also. Despite lowest level of attrition in the IT industry at just 15.3%, the PAT margins narrowed from 20.71% in the Dec-20 quarter to 19.98% in the Dec-21 quarter. Net margins were also lower sequentially.

Financial highlights for Dec-21 compared yoy and sequentially

	TCS Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 48,885.00	₹ 42,015.00	16.35%	₹ 46,867.00	4.31%
Operating Profit (Rs cr)	₹ 12,237.00	₹ 11,184.00	9.42%	₹ 12,000.00	1.98%
Net Profit (Rs cr)	₹ 9,769.00	₹ 8,701.00	12.27%	₹ 9,624.00	1.51%
Diluted EPS (Rs)	₹ 26.41	₹ 23.19		₹ 26.02
OPM	25.03%	26.62%		25.60%
Net Margins	19.98%	20.71%		20.53%