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TCS Q3 results: From share buyback to dividend, here are 10 key takeaways

TCS Q3 results: From share buyback to dividend, here are 10 key takeaways

The IT company's board has recommended a buyback of shares to the tune of Rs 18,000 crore at Rs 4,500 per share.

TCS' revenue from operations increased by 16.35 per cent YoY and 4.31 per cent QoQ to Rs 48,885 crore. TCS' revenue from operations increased by 16.35 per cent YoY and 4.31 per cent QoQ to Rs 48,885 crore.

IT major Tata Consultancy Services (TCS) on Wednesday reported 12.27 per cent year-on-year (YoY) and 1.51 per cent quarter-on-quarter (QoQ) growth in consolidated net profit at Rs 9,769 crore for the quarter ended December 2021. On the other hand, revenue from operations increased by 16.35 per cent YoY and 4.31 per cent QoQ to Rs 48,885 crore. 

Earlier, shares of the company settled 1.50 per cent lower at Rs 3,857.25 ahead of the quarterly results. The benchmark BSE Sensex closed 0.88 per cent higher at 61,150. 

Commenting on Q3 results, Samir Seksaria, chief financial officer of TCS 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."

Here are other key takeaways from earnings:

Dividend: The board of directors declared a dividend of Rs 7 per equity share. TCS has fixed January 20 as the record date and it will be paid on February 7 to all the eligible shareholders of the company. 

Buyback: The board also recommended a buyback of shares to the tune of Rs 18,000 crore at Rs 4,500 per share. 

Total expenditure: Total outlay of TCS increased 19 per cent YoY to Rs 36,648 crore in Q3FY21 due to a rise in employee costs (up 15.94 per cent to Rs 27,168 crore) and other operating expenses (up 31.30 per cent to Rs 7,852 crore).

Attrition rate: The company added 28,238 employees on a net basis, taking the total number of employees to 5,56,986 as on December 31. IT services attrition rate (LTM) stood at 15.30 per cent during the quarter under review.

Also Read: Infosys Q3 results: Net profit up 11.8% YoY to Rs 5,809 cr, revenue up 22.9%

Industries: All verticals grew in the mid to high teens. Growth was led by retail and CPG (20.4 per cent), BFSI (17.9 per cent) and the manufacturing vertical (18.3 per cent). Technology and services grew 17.7 per cent, life sciences and healthcare grew 16.3 per cent and communications and media witnessed a growth of 14.4 per cent.

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

Client metrics shine: The company added 58 clients in the $100 million-plus bucket, a growth of 10 clients YoY. It also added 118 clients (up 21 YoY) in the $50 million bucket-plus bucket. 

Patents: As on December 31, the company has applied for 6,396 patents, including 227 applied during the quarter, and has been granted 2,201 patents.

From the CEO: 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."

April-December performance: Net profit of the company has jumped 22.50 per cent YoY to Rs 28,401 crore for the nine months ended December 31. Revenue from operations increased by 17.17 per cent YoY to 1,41,163 crore during the same period.

Also Read: Wipro Q3 results: Net profit at Rs 2,969 cr, board approves interim dividend of Re 1