TCS Q3 net profit up 11%; interim and special dividend of Rs 75 per share announced

BENGALURU: IT services company Tata Consultancy Services (TCS) on Monday reported a 11% increase in its consolidated net profit for the third quarter ended December 2022 at Rs 10,846 crore compared to Rs 9,769 crore in the same quarter last year.

The growth was driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and the UK.

Beating Street estimates, the company's revenues stood at Rs 58,229 crore for the third quarter, a 19.1% y-o-y increase compared to Rs 48,885 crore in the year-ago period.

The Board of Directors have declared a third interim dividend of Rs 8 and a special dividend of Rs 67 per equity share. The interim dividend and the special dividend will be paid on February 3, 2023.

Also, the company announced that it had reduced its headcount by 2,197 employees in Q3.

TCS' operating margin stood at 24.5%, contraction of 0.5% y-o-y and net margin at 18.6%. Its order book stood at $7.8 billion.

Rajesh Gopinathan, CEO and MD, said, "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."

The TCS scrip rose by 3.35 per cent to Rs 3,319.70 on a day when the BSE lodged a 1.41 per cent gain.