TCS Q3 net profit rises 12% to Rs 9,769 cr; board approves buyback of Rs 18,000 cr

TCS Q3 net profit rises 12% to Rs 9,769 cr; board approves buyback of Rs 18,000 cr

The IT giant's revenue rose 16.3% YoY to Rs 48,885 crore from Rs 42,015 crore in the corresponding period last fiscal.

TCS Q3 results TCS Q3 results

Top IT service major Tata Consultancy Services (TCS) on Wednesday reported 12 per cent (YoY) increase in consolidated net profit for the quarter ending 31 December, 2021 at Rs 9,769 crore, boosted by a demand for digital services such as cloud. The company had reported a net profit of Rs 8,701 crore in the year-ago period. 

The company's revenue rose 16.3 per cent YoY to Rs 48,885 crore from Rs 42,015 crore in the corresponding period last fiscal, and 15.4 per cent in constant currency (CC) terms. It also stated that it has hit the $25 billion revenue mark in CY 2021 in dollar terms.

The IT giant's net income came at Rs 9,769 crore, up 12.3 per cent YoY, while net margin was at 20%.

The company's board also approved buyback of shares at valued at Rs 18,000 crore being 1.08 per cent of the total paid up equity share capital at 4,500 per equity share.

Share buybacks refer to the repurchasing of shares of stock by the company that issued them. A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.

Moreover, TCS board also approved third interim dividend of Rs 7 per share for FY22. The record date is 20 January and payment is 7 February.

In case of employee headcount, TCS added 28,238 employees in the said quarter, increasing the workforce strength to 556,986. It also added that the company has crossed 200,000-mark in women in the workforce with over 68 per cent growth at senior Levels during 2016-21.

Its IT services attrition rate (LTM) in the third quarter stood at 15.3 per cent.

Commenting on the results, 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.”

TCS also said its operating margin stood at 25 per cent for the quarter, down 1.6 per cent YoY. It added 10 new $100 million-plus clients during the quarter, taking the total to 58. It also added 21 new $50 million-plus clients, taking the total to 118.

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 Chief HR Officer Milind Lakkad said, ''In addition to the 43,000 freshers we hired in H1, we onboarded 34,000 fresh graduates in Q3 — which is higher than our full-year fresher hiring numbers in prior years.'' Lakkad added that the company has been able to retain its best talent and overcome supply-side challenges, ''by continuing to invest in our people, giving preference to internal candidates for the most exciting open positions, providing global deployment opportunities, fast track career paths linked to learning, and promotions to over 110,000 employees''.

On Wednesday, the company's scrip on BSE closed 1.50 per cent lower at Rs 3,857.25 apiece.