Tata Consultancy Services (TCS) Q3 net profit flat at Rs 8118 crore
Global software major Tata Consultancy Services (TCS) on Friday reported a consolidated net profit of Rs 8,118 crore for the third quarter of fiscal 2019-20, registering a mere 0.16 per cent growth from Rs 8,105 crore clocked in the same quarter last year
Global software major Tata Consultancy Services (TCS) on Friday reported a consolidated net profit of Rs 8,118 crore for the third quarter of fiscal 2019-20, registering a mere 0.16 per cent growth from Rs 8,105 crore clocked in the same quarter last year.
In a regulatory filing on the BSE, the IT major said that consolidated revenue for the quarter under review, however, grew 6.7 per cent to Rs 39,854 crore from Rs 37,338 crore in the same period a year ago.
On sequential basis, TCS net profit rose by 0.94 per cent to Rs 8,118 crore from Rs 8,042 crore recorded in Q2 2019-20.
TCS: Strong Share Gains in Europe Stand Out in Seasonally Weak Q3
Q3 CC Revenue Growth of 6.8% YoY
Europe (+15.9% YoY), LSHC (+17.1% YoY) Drive Growth
Operating Margin at 25%
MUMBAI, January 17, 2020: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading global IT services, consulting and business solutions organization, reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending December 31, 2019.
Financial Highlights for Quarter Ended December 31, 2019
Revenue at $5,586 million, +6.4% YoY
Constant currency revenue growth: +6.8% YoY
Operating Margin at 25%; Net Margin at 20.4%
Net Income at $1,138 million; Earnings Per Share at $0.3
Net Cash from Operations at 116.4% of Net Income
Dividend per share: ₹5.00
Record date 25/01/2020; Payment date 31/01/2020
Business Highlights for Quarter Ended December 31, 2019
Life Sciences & Healthcare continues to outperform, growing +17.1% YoY; Manufacturing grew +9.2% YoY and Communications & Media grew +9.5%
Europe grew +15.9% YoY
Net addition of 22,390 employees YTD
93% of the 30K freshers onboarded in H1 deployed in projects
Continued investments in organic talent development:
327K+ employees trained in digital technologies
404K+ employees trained in Agile methods
Industry-leading talent retention: IT Services attrition rate at 12.2% LTM
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Commenting on the Q3 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said,“We saw the sectoral trends of the first half of the year continue to play out in the third quarter. Our robust order book during the quarter reflects our ability to pitch innovative technology solutions to address the business needs of different stakeholders in the enterprise, and participate in our customers’ enterprise-wide transformation initiatives. This is also helping deepen and broaden our customer relationships, and make the business more resilient.”
He added,“Our participation in the growth and transformation spends of our customers is most evident in our sustained success in Continental Europe where our revenues have more than doubled in the last five years. Our thought leadership in areas like the Business 4.0™ framework, Enterprise Agility and the Machine First Delivery Model, our domain and technology consulting expertise, investments in research and innovation, and our ability to design complex solutions leveraging multiple capabilities from across TCS, have made us the preferred partner for CEO-level initiatives at progressive organizations.”
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said, “In a seasonally weak quarter characterized by furloughs across multiple industry verticals, we focused on execution, while continuing to invest for future growth. Having onboarded over 30,000 trainees in the first half of the year, we worked on driving up utilization in Q3 and had good outcomes. Our client metrics were also very good, with additions across most revenue buckets.”
He added,“Our large core transformation engagements are all progressing very well. At M&G Prudential as well as at Scottish Widows, we crossed important transformation milestones, successfully migrating hundreds of thousands of policies from legacy systems onto our platform, significantly enhancing the customer experience for those policy holders. These are industry-defining engagements, closely watched by other insurance companies. Our achievement of these key milestones adds further impetus to their own transformation plans.”
V Ramakrishnan, Chief Financial Officer, said,“Our ability to expand our margins in a volatile environment speaks of the strength of our business model, strong execution focus and the higher quality revenues we are getting on account of our strong positioning in our customers’ growth and transformation spends.”
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