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Q3 results: TCS net profit up 2% yo-y at Rs 11,058 crore; Infosys net profit drops 7% to Rs 6,106 crore

TCS’ workforce was reduced by 5,680 employees and its total headcount stood at 603,305 as of December 2023.

TCS 011 2BENGALURU: The country’s largest IT services company Tata Consultancy Services (TCS) has reported a 2% y-o-y growth in its consolidated net profit for the December quarter to Rs 11,058 crore compared to Rs 10,846 crore profit in the year-ago period. It posted higher-than-expected revenue for the third quarter at Rs 60,583 crore, up 4% y-o-y.

The company’s operating margin for the quarter stood at 25% and its order book for the quarter was $8.1 billion.

K Krithivasan, CEO and MD, 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.”

The company said it is seeing strong deal momentum across markets. “We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area,” he added. TCS declared Rs 27 dividend per share including Rs 18 as a special dividend. The third interim dividend and the special dividend will be paid on February 5, 2024.

TCS’ workforce was reduced by 5,680 employees and its total headcount stood at 603,305 as of December 2023. Its LTM IT Services attrition rate was at 13.3%.

IT services company Infosys too reported its Q3 results on Thursday. It posted a 7.3% drop in Q3 net profit at Rs 6,106 crore compared to Rs 6,586 crore in the same quarter last year. The IT major has again revised its FY24 revenue guidance to 1.5-2% against 1-2.5% it reported in the second quarter and operating margin guidance at 20-22%.

Infosys’ revenues for the third quarter stood at Rs 38,821 crore, a growth of 1.3% y-o-y. Its operating margin for the December quarter stood at 20.5%, a decline of 1% y-o-y. The IT company’s large deal for the quarter stood at $3.2 billion.

“Our performance in Q3 was resilient. Large deal wins were strong at $3.2 billion, with 71% of this as net new, reflecting the relevance and strength of our portfolio of offerings ranging from generative AI, digital and cloud to cost, efficiency and automation,” said Salil Parekh, CEO and MD.

“Our clients are leveraging our Topaz generative AI capabilities and our Cobalt cloud capabilities to create long-term value for their businesses”, he added.

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