Tata Consultancy Services (TCS), the largest IT company in India, recorded a consolidated net profit of ₹9,769 crore during the December quarter of the current fiscal as all verticals reported double-digit growth in mid-to-high teens. The software major had reported a net profit of ₹8,701 crore in the year-ago period.
Total revenue jumped to ₹48,885 crore during the quarter ended December 31, 2021, as against ₹42,015 crore during the same period a year ago, marking a growth of 16.3%. Meanwhile, expenses swelled to ₹36,899 crore during the period under review, as against ₹31,014 crore in the year-ago period.
Operating income stood at ₹11,986 crore, as opposed to ₹11,001 crore in the year-ago period. TCS said that its operating margin for the December quarter was at 25%, lower by 1.6% year-on-year. Profit before taxes in Q3 FY22 was calculated at ₹13,191 crore, compared to ₹11,692 crore in Q3 FY21. Earnings per share also rose to ₹26.41 from ₹23.19 in December 2020.
TCS mentioned that the stellar performance in the recently concluded December quarter helped it achieve the $25-billion mark in annual revenue. The company added 10 new clients to its $100-million+ bracket on annual bsais, now at 58, and 21 new clients in the ₹50-million+ bucket, taking the number to 118.
The IT bellwether mentioned that all its verticals grew in mid-to-high teens, ranging from 14.4% to 20.4%. Retail and consumer business vertical led the segments with a growth of 20.4%, followed by BFSI which recorded 17.9% growth. The manufacturing vertical rose by 18.3%, technology and Services grew 17.7%, life sciences and healthcare vertical grew 16.3%, while communications and media vertical saw 14.4% growth during the December quarter.
TCS saw its business grow 18% in North America and 17.5% in continental Europe, making them the two biggest markets for the company. The company saw its UK grow 12.7% during the December quarter. Among emerging markets, growth was led by Latin America (21.1%) and India (15.2%), followed by Middle East and Africa (6.9%) and Asia Pacific (4.3%).
“Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers’ business transformation needs. Customers love our engagement model, our end-to-end capability, and our can-do approach to problem solving. While mapping out their innovation and growth journeys, we are also helping them execute new-age operating model transformations to support those journeys,” said TCS CEO and MD Rajesh Gopinathan.
TCS disclosed in an exchange filing that the number of women in its workforce has crossed 200,000. The company added 28,238 employees on a net basis, taking the total number of employees to 556,986 from 156 nationalities as on December 31, 2021. The attrition rate in the company is at 15.3%, which TCS claims is the lowest in the country.
The board of TCS also approved an interim dividend of ₹7 per equity share of ₹1 each for the current fiscal.
“The third interim dividend shall be paid on Monday, February 7, 2022, to the equity shareholders of the company, whose names appear on the register of members of the company or in the records of the depositories as beneficial owners of the shares as on Thursday, January 20, 2022, which is the record date fixed for the purpose,” the company said in a statement.