TCS Q3 Results HIGHLIGHTS: Indias largest IT services firms net profit rises 4% to Rs 10,846 crore, revenue up 5%
Tata Consultancy Services (TCS) -- Indias largest IT services company -- reported a net profit of Rs Rs 10,850 crore for the October-December period, missing analysts estimates.
Tata Consultancy Services (TCS) -- India's largest IT services exporter -- reported a net profit of Rs 10,850 crore for the December quarter, marking growth of four per cent on a quarter-on-quarter basis and missing analysts' estimates. Tata Consultancy Services' earnings come at a time when IT companies have been reeling under margin pressure owing to increasing employee costs emanating from higher levels of attrition despite robust demand.
According to Zee Business research, TCS was expected to report a net profit of Rs 11,270 crore for the quarter, translating to a sequential increase of eight per cent.
Attrition at TCS eased by 20 bps sequentially to 21.3 per cent (12-month basis), though the IT firm saw a net decrease of 2,197 in headcount to 6,13,974. The company's management said it expects attrition to ease further in the coming months.
Find highlights of the January 9 session on Dalal Street here.
Catch key highlights of TCS results, the IT giant's management commentary, expert views and much more here on Zee Business (zeebiz.com):
Latest Updates
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:
Index/stock Change (%) NIFTY50 1.4 NIFTY IT 2.8 PERSISTENT 4 HCLTECH 3 TECHM 2.7 COFORGE 2.6 WIPRO 2.6 INFY 2.6 LTIM 2.4 LTTS 1.1 MPHASIS 1 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.
Demand for TCS services continues to be very stong: CEO after Q2 results
"We registered strong, profitable growth across all our industry verticals and in all our major markets," said TCS CEO Rajesh Gopinathan after the IT major reported its financial results for the July-September period.
"Our order book is holding up well, with a healthy mix of growth and transformation initiatives, Cloud migration and outsourcing engagements," he said.
"As clients prepare for a more challenging environment ahead, technologies like Cloud that have been embraced now have to be fully leveraged to realize the promised value. TCS has the combination of contextual knowledge, technology expertise and execution rigor to deliver on this imperative."
TCS attrition worsened by 180 bps to 21.5% in July-September
Tata Consultancy Services' workforce stood at 6,16,171 at the end of the July-September period with a a net addition of 9,840 during the quarter.
Follow this space for the IT company's attrition reading for the October-December period due later today.
TCS Results | IT major's net profit topped Rs 10,000 crore mark for first time in a quarter in July-September
For the July-September period, TCS reported a sequential increase of 10 per cent in net profit to Rs 10,431 crore. Its revenue increased five per cent on quarter to Rs 55,309 crore -- a ninth back-to-back quarter of revenue growth. (Read more on TCS Q2 results here)
TCS Results | Constant currency revenue growth likely at 1.6%. Here's what to expect from IT major's earnings today
Zee Business's Kushal Gupta says Tata Consultancy Services is expected to report revenue growth of 1.6 per cent in constant currency terms on a quarter-on-quarter basis. Attrition at the IT major is likely to ease but the management's commentary on growth will be watched closely, he says. (Watch for more on what to expect from TCS results today)
TCS shares rewarded investors with 8.5% return in December quarter
TCS shares gained by Rs 254.7 to Rs 3,259.3 apiece in the last quarter of 2022, sharply outperforming the overall market whose 30-scrip benchmark rose 5.9 per cent during this period.
The S&P BSE IT index -- whose 60 constituents include the country's five largest IT firms TCS, Infosys, Wipro, HCL Tech and Tech Mahindra -- went up 4.3 per cent.
Here's how the TCS stock has moved in the past three months:
TCS Results | IT giant likely to report revenue growth of 3.6% to Rs 57,280 crore
TCS is likely to report a 3.6 per cent sequential rise in revenue (in rupee terms) to Rs 57,280 crore.
TCS Results | Sequential dollar revenue growth estimated at 1.4%
According to Zee Business research, Tata Consultancy Services (TCS) is likely to report revenue of $6,970 million for the quarter ended December -- up 1.4 per cent on a quarter-on-quarter basis.
Follow this space for Zeebiz.com's coverage on TCS results today here.
TCS Results | Net profit estimated to rise 8% sequentially to Rs 11,270 crore
Tata Consultancy Services (TCS) is likely to report a net profit of Rs 11,270 crore for the October-December period, according to Zee Business research. That translates to a sequential increase of eight per cent.
For the quarter ended September, Tata Consultancy Services had registered a net profit of Rs 10,431 crore.
TCS shares hold on to day's gain
Tata Consultancy Services shares are holding on firmly to the green, up by Rs 89.4 or 2.8 per cent at Rs 3,301.4 apiece on BSE. The stock has risen as much as 3.1 per cent to Rs 3,313 apiece during the session so far.
Welcome to Zee Business's LIVE blog on TCS results!
Tata Consultancy Services -- India's largest IT services company -- is all set to report its financial results today. The IT giant will kick off the country's corporate earnings season.
Follow this space for our minute-by-minute coverage on TCS earnings, management commentary, analysis, expert views and much more.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.