TCS results: Tech titan once again posts strong results; Q3FY19 profit rises by 24% to Rs 8,105 crore; dividend declared

A Bloomberg poll of analysts had predicted TCS revenue and net profit to come in at Rs 37,914 crore and Rs 8,190 crore respectively in Q3FY19. 

TCS results: Tech titan once again posts strong results; Q3FY19 profit rises by 24% to Rs 8,105 crore; dividend declared
Rajesh Gopinathan, CEO and Managing Director, TCS. Image source: Reuters
By ZeeBiz WebTeam
Updated: Thu, Jan 10, 2019
05:58 pm
Mumbai, ZeeBiz WebDesk
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TCS results: Tech-giant Tata Consultancy Services (TCS) posted a strong December 2018 quarter (Q3FY19) result in line with analysts estimates. The company recorded net profit of Rs 8,105 crore which was higher by 24.10% compared to the profit of Rs 6,531 crore witnessed in the same period a year ago. Q3FY19 was gradually up by 2.44% as against net profit of Rs 7,927 crore of Q2FY19. Meanwhile, TCS' revenue came in at Rs 37,338 crore during the quarter, rising by 20.81% from Rs 30,904 crore in Q3FY18 and also up by 1.31% from Rs 36,584 crore in Q2FY19. A Bloomberg poll of analysts had predicted TCS revenue and net profit to come in at Rs 37,914 crore and Rs 8,190 crore respectively in Q3FY19. 

Rajesh Gopinathan, Chief Executive Officer and Managing Director, said, "We are wrapping up 2018 with strong revenue growth of 12.1% in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies. The strong client metrics, industry-leading growth in digital services, a very
strong order book and deal pipeline are all validations that customers recognize our differentiated capabilities and are picking us for their growth and transformation programs."

Gopinathan added, "On a secular basis, as large segments of the economy go through churn driven by digital disruption, enterprises are responding with technology-powered strategies - as in algorithmic retailing or connected cars - creating a huge opportunity for services providers like us."

During Q3FY19,  revenue growth continued to accelerate in BFSI (+8.6% vs +6.1% in Q2). Growth was led by Energy Utilities (+18.1%), Life Sciences & Healthcare (+15.7%)' Communications & Media (+10.8%)
and Retail & CPG (+10.5%).

On a geographical basis, revenue growth accelerated in all areas compared to Q2. Growth was led by UK (+25.1%), Europe (+17.6%), and Asia Pacific (+12.6%). North America grew 8.2%, India grew 9.7% and Latin America grew 7.6%. 

Constant Currency revenue growth stood over 1.8% QoQ and 12.1% YoY basis. 

While presenting the Q3FY19 result, TCS has also announced its third interim dividend of Rs 4 per equity shares of Rs each of the company. 

Third Interim Dividend shall be paid on January 24, 2019 to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records
of the Depositories as beneficial owners of the shares as on Friday, January 18,2019 which is the Record Date fixed for the purpose. 

On Sensex, TCS share price ended at Rs 1888.15 subdued compared to previous trading price.