TCS Q3 Result 2023 + Dividend Highlights:
- Tata Consultancy Services (TCS) reported a 10.98% increase in consolidated net profit for Q3 ending December 2022, reaching INR 10,883 crore
- TCS’ revenue for the quarter was INR 58,229 crore, a 19.11% increase from the same quarter the previous fiscal year
- TCS’ revenue in constant currency terms increased 13.5% year-on-year, driven by growth in North America and the UK
- TCS’ operating margin for the quarter was 24.5%, with a net margin of 18.6%
- Analysts had predicted a 2.9% quarter-on-quarter increase in revenue and a 7.8% quarter-on-quarter increase in net profit for the October-December quarter
- TCS announced a dividend of INR 75 per share, including INR 67 as a special dividend, with a record date of January 17th and payment date of February 3rd, 2022
- TCS’ order book for the quarter was $7.8 billion
- TCS’ net headcount decreased by 2,197 employees, with an IT Services attrition rate of 21.3% for the past 12 months
- TCS attributes strong growth and expanding operating margin to improved productivity, currency support, and easing supply-side challenges
Tata Consultancy Services (TCS) Q3 Results and Dividend News In Detail:
Though the company’s revenue exceeded expectations, its profit fell short of what analysts had predicted. TCS also announced a dividend of INR 75 per share, including INR 67 as a special dividend. The record date for dividends is January 17th, and the payment date is February 3rd, 2022.
Tata Consultancy Services (TCS) announced on January 9th that its consolidated net profit had increased by 10.98% to INR 10,883 crore for the quarter ending December 2022 (Q3FY23). In comparison, the company had posted a profit of INR 9,806 crore for the same period the previous year.
The revenue from operations for the quarter was Rs 58,229 crore, a 19.11% increase from the same quarter of the previous fiscal year, which had revenue of Rs 48,885 crore.
The company reported a 13.5% year-on-year increase in revenue in constant currency terms, driven by growth in North America and the UK, which rose 15.4% year-on-year. The operating margin for the period was 24.5%, a 0.5% contraction from the previous year. The net margin was 18.6%.
During a typically slow quarter, analysts had predicted that the Tata group company would see a 2.9% quarter-on-quarter increase in revenue and a 7.8% quarter-on-quarter increase in net profit for the October-December quarter.
The company announced a dividend of Rs 75 per share, including a special dividend of Rs 67. The record date for dividends is January 17, and the payment date is February 3, 2022.
The order book for the quarter was $7.8 billion.
“We are pleased with our strong growth during a typically slow quarter, which was driven by cloud services, market share gains from vendor consolidation, and ongoing momentum in North America and the UK,” said Rajesh Gopinathan, CEO and Managing Director of TCS. “The sustained demand for our services demonstrates the value we provide to our clients as they strive to differentiate themselves and enhance their competitiveness. Despite current uncertainties, our long-term growth prospects remain strong.”
TCS reported a net decrease of 2,197 employees. Its IT Services attrition rate for the past 12 months was 21.3%.
“Improved productivity, currency support, and easing supply-side issues helped expand our operating margin in Q3,” said Samir Seksaria, Chief Financial Officer of TCS. “This increases our confidence in our ability to maintain profitability within our target range while continuing to invest in new capabilities to support our growth and market share gains.”
TCS Announces Rs.75 Dividend Per Share
The Directors of TCS have declared a third interim dividend of ₹8 and a special dividend of ₹67 per Equity Share of ₹1 each for the Company at the Board Meeting held today.
On Friday, February 3, 2023, the third interim dividend and the special dividend will be paid to the equity shareholders of the Company whose names are recorded in the Register of Members or in the records of the Depositories as the beneficial owners of the shares as of Tuesday, January 17, 2023, which is the designated Record Date for this purpose.
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