TCS Q3 results: Profit rises 12% YoY; firm announces Rs 18,000 cr buyback

NEW DELHI: Tata Consultancy Services (TCS), the largest IT company in India, on Wednesday said its consolidated net profit for the quarter ended December climbed 12.3 per cent to Rs 9,769 crore from Rs 8,701 crore in the corresponding quarter last year.

The company said its revenue from operations increased 16.3 per cent year-on-year (YoY) to Rs 48,885 crore from Rs 42,015 crore in the same quarter a year ago.

TCS announced a third interim dividend of Rs 7 per share. The record date for the dividend is January 20 and dividend will be credited by February 7.

It also announced share buyback at Rs 4500 per share, at a premium of 16.67 per cent over the last traded price of the stock. The company will buy back shares worth Rs 18,000 crore.

“We continued our focus on growing organically and on developing the talent, methodologies, and toolkits for an ever-evolving technology landscape. We are also delighted to cross another important milestone in our journey, hitting the $25 billion revenue mark in CY2021,” said N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, TCS.

TCS said its operating margin stood at 25 per cent for the quarter, down 1.6 per cent YoY. This compares with its peers who also saw a contraction of margin for the quarter. It added 10 new $100 million-plus clients during the quarter, taking the total to 58. It also added 21 new $50 million-plus clients, taking the total to 118.

Net cash from operations was at Rs 10,853 crore which is 111.1 per cent of net income. It said that company’s IT Services attrition rate was at 15.3 per cent, “lowest” in the industry.

“Our sustained investment in our talent has helped us power strong growth despite a challenging supply environment. We remain focused on long term talent development as well as on tactical measures to mitigate the talent churn. We have exercised various operating levers in Q3 to mitigate the higher costs and manage our employee expense,” said Samir Seksaria, Chief Financial Officer, TCS.