TCS Q3 Results HIGHLIGHTS: India's largest IT services firm's net profit rises 4% to Rs 10,846 crore, revenue up 5%

TCS Results | Attrition eases by 20 bps to 21.3%  

Tata Consultancy Services saw a net decrease of 2,197 in headcount to 6,13,974 in the three-month period. It reported an attrition rate of 21.3 per cent for the quarter on a last-12-month basis, as against 21.5 per cent for the July-September period.  

TCS Results | CFO Samir Seksaria says improved productivity, currency support, abating supply-side challenges helped in expanding operating margin

TCS CFO Samir Seksaria says improved productivity, currency support and abating supply-side challenges helped the company expand its operating margin in the October-December period. "This gives us greater confidence in our ability to steer our profitability towards our preferred range, while continuing to invest in building newer capabilities to support our growth and market share gains,” the CFO adds. 

TCS Results | CEO Rajesh Gopinathan says strong growth in seasonally weak quarter driven by Cloud services, market share gains

TCS CEO and MD Rajesh Gopinathan says: “We are pleased with our strong growth in a seasonally weak quarter, driven by Cloud services, market share gains through vendor consolidation, and continued momentum in North America and the UK."

"The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves, while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust,” he adds. 

TCS Results | Dollar revenue crosses $7 billion mark propelled by Cloud demand, market share gains

TCS board declares interim dividend of Rs 8 per share, special dividend of Rs 67 per share 

The company's board declares an interim dividend of Rs 8 per share and a special dividend of Rs 67 per share.

TCS Results | Revenue in rupee terms up 5.3% at Rs 58,229 crore

The IT giant reports revenue of Rs 58,229 crore for the December quarter, as against Rs 55,309 crore for the previous three months. 

According to Zee Business research, TCS was expected to report a 3.6 per cent sequential increase in revenue to Rs 57,280 crore for the October-December period. 

TCS Results | IT major reports 4% sequential increase in net profit to Rs 10,850 crore for October-December  

Tata Consultancy Services' quarterly net profit falls short of analysts' estimates. According to Zee Business research, TCS was estimated to report a net profit of Rs 11,270 crore for the quarter, translating to a sequential increase of eight per cent. 

Sharekhan has TCS at third position among preferred large caps

Sharekhan has TCS after Infosys and HCL Tech in its pecking order for the largecap IT space.  The brokerage has Tech Mahindra at the fourth spot.  

Major price damage is behind us, macro-overhang to restrict outperformance: Price performance of

"Indian IT companies have corrected significantly on a one-year basis, with the Nifty IT Index (down 25 per cent) underperforming benchmark indices (Nifty up two per cent). Concerns relating to macro headwinds has led to sharp de-rating in IT sector which is evident in the recent corrections. While the broader benchmark indices have turnaround from their lows, the Nifty IT Index continues to languish given concerns of slowdown to recessionary fears in their key markets," the brokerage said on IT valuations. 

It is of the view that concerns relating to macro headwinds are unlikely to abate anytime soon, restricting any material outperformance for Indian IT companies. "We advise investors to accumulate stocks in a staggered manner, our underweight stance at a portfolio-level continues," it added.  

Sharekhan has Persistent Systems and Coforge in its peclking order for midcap IT.   

Sharekhan sees sequential revenue growth of 1.5% for TCS in October-December 

According to Sharekhan, TCS is expected to report 1.5 per cent sequential growth in revenue in constant currency terms for the October-December period due to robust growth in digital services with a likely 30 bps cross-currency tailwind, which it sees resulting in higher reported dollar revenue growth of 1.8 per cent (quarter-on-quarter).

The brokerage estimates Tata Consultancy Services' EBIT margin to likely improve by 118 bps sequentially due to the benefits of lower subcontracting expenses and higher billable freshers in addition to the weaker rupee.

Follow this space for Zeebiz.com's coverage on TCS results today.

TCS reported attrition of 21.5% in September quarter 

Tata Consultancy Services reported IT services attrition at 21.5 per cent on the last-twelve-months basis in October. The company said it expects attrition to start to taper down in the second half of the year with normalising wage expectations and talent supply catching up across the industry.

Infosys, Wipro, HCL Tech to report their financial results this week 

Following close on the heels of TCS, Infosys and HCL Tech will report their financial results on January 12, and Wipro on January 13. 

Analysts at Motilal Oswal Financial Services estimate median revenue growth of IT companies to stand at 1.9 per cent sequentially in constant currency terms for the October-December period.

“Revenue growth momentum of IT companies is likely to moderate in the third quarter of the financial year 2022-23 (Q3FY23) due to furloughs, a lower number of working days, deferred spending by few clients and increased cautiousness among clients on the back of macro uncertainties,” according to Dipesh Mehta, Senior Research Analyst at Emkay Global Financial Services. (Here's what more to expect from major IT firms in Q3)

TCS Results | Rupee weakness, easing attrition likely to aid TCS margin in October-December

TCS is due to kick off the earnings season shortly today. Analysts will closely watch out for deal wins, and the management's outlook on margin and its commentary on pricing. (Read more on what to expect from TCS results today)

TCS shares end 3% higher ahead of results

TCS shares finish the day at Rs 3,310 -- a gain of Rs 98 or 3.1 per cent over their previous close, having risen by as much as Rs 115.8 or 3.6 per cent to Rs 3,327.8 apiece during the session. 

Here's how the overall market and stocks of some of the IT major's peers fare at the close: 

Catch highlights of the January 9 session on Dalal Street here. 

TCS steadily making its way towards achieving operating margin priority for the year: CFO Samir Seksaria after Q2 results

"We are steadily making our way towards achieving our operating margin priority for the year, aided by leverage from good growth, the flattening of the workforce pyramid, steadily improving productivity and currency support," TCS CFO Samir Seksaria said after the company reported a nine per cent sequential increase in operating profit for the July-September period.

Its EBIT margin improved by 90 bps to 24 per cent for the three-month period. 

"Very importantly, the headwinds from the supply-side challenges are abating, so that sets us up well for the seasonally weak second half of the year," the CFO said. 

Follow this space for Zeebiz.com's coverage on the TCS Q3 results due later today. 

TCS shares extend gains with large volumes

The TCS stock jumps by as much as Rs 115.8 or 3.6 per cent to Rs 3,327.8 apiece on BSE with large volumes. 

A total of 1.5 lakh shares have changed hands on the bourse in intraday trade so far as against a daily average of 64,000 in the past two weeks, according to exchange data.