TCS Q3 Results: Consolidated PAT slips 2.5% QoQ to Rs 11,058 crore

TCS Q3 Results: Tata Consultancy Services (TCS) on Thursday, January 11, reported a net profit or profit after tax (PAT) of Rs 11,058 crore for the quarter ended December 31, 2023 (Q3 FY24). The figure slipped 2.5 per cent on a QoQ basis. On a year-on-year (YoY) basis, PAT grew 1.95 per cent. 

Revenue from operations stood at Rs 60,583 crore, up 1.49 per cent QoQ and 4.04 per cent YoY. 

The company also announced a third interim dividend of Rs 9 and a special dividend of Rs 18 per equity share of Re 1 each.

"The third interim dividend and the special dividend shall be paid on Monday, February 5, 2024, 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 of Friday, January 19, 2024, which is the record date fixed for the purpose," the company added.

K Krithivasan, Chief Executive Officer and Managing Director, said: “Our strong performance in a seasonally weak quarter buffeted by macro-economic headwinds demonstrates the strength of our business model with a well-diversified portfolio and a customer-centric strategy. We are seeing strong momentum across markets, resulting in a solid order book and providing visibility into our long-term growth. We are seeing tremendous interest in generative AI and are leading the innovation and exploratory efforts for our customers in this area.”

Q3 Segment Highlights

Industries: Growth was led by the Energy, Resources, and Utilities vertical, which grew 11.8%; manufacturing, which grew 7.0%; and life sciences and healthcare, which grew 3.1%. The Consumer Business Group (CBG) grew -0.3%, BFSI grew -3.0%, Communications & Media grew -4.9% and Technology & Services grew -5.0%. Regional markets grew 19.2%, the company said.

Markets: Among major markets, the United Kingdom led with 8.1% growth; Continental Europe grew 0.5%; and North America grew -3.0%. In emerging markets, India led with 23.4% growth, the Middle East and Africa grew 16.0%, Latin America grew 13.2%, and Asia Pacific grew 3.9%.