The Mumbai-based multinational tech company, Tata Consultancy Services (TCS) announced on Monday that it posted a 10.98 percent increase in the consolidated net profits during the third quarter of the current financial year. In the quarter which ended in December 2022, Tata Consultancy Services posted a consolidated net profit of 10883 crore rupees.
During the December quarter of the previous financial year, the consolidated net profit of the Indian tech giant was standing at 9806 crore rupees.
The consolidated revenue of TCS also went up by 19.11 percent in the third quarter as the tech company managed to score growth in North American and European business regions. Consolidated revenue increased to 58,229 crores in Q3 from 48,885 crore rupees in the corresponding quarter of the previous financial year.
Total income earned by the company in the third quarter was posted at 50,833 crore which is an 18.02 percent jump when compared to the third quarter of the previous financial year. A year ago, the total income for Q3 was posted at 43,070 crores. When compared to the last quarter of the current financial year, total income grew by 10.98 percent.
Even as multinational tech companies around the world suffered sharp declines in revenue and profits, Tata Consultancy Services owned by Tata Group managed to grow against global headwinds and macroeconomic challenges. Amidst the highly volatile global economy and macroeconomic crisis, customers of TCS continued to take services from the company.
A closer look at revenue in constant currency terms will help understand what led to a drastic increase in the profits of TCS. The company witnessed revenue growth of 15.4 percent in North America & UK. On a sequential basis, TCS’ profit jumped by 3.99 percent, from Rs 10,465 crore in the quarter ended September.
Tata Consultancy Services also announced that its board of directors has approved a third interim dividend of 8 rupees. Along with the interim dividend, TCS also announced a special dividend of 67 rupees per equity share of Rs 1 each of the company.
According to Chief Executive Officer of TCS, Rajesh Gopinathan, the third quarter is usually a weak quarter for the company every year. He said the company was happy to post strong growth in the third quarter. Rajesh Gopinathan said that cloud services, market share gains through vendor consolidation, and continued momentum in North America and the UK helped TCS achieve high growth momentum.
He also added that long-term growth outlook of Tata Consultancy Services looks robust even as macroeconomic uncertainties continue to rock the IT sector.
