Q3 result update: TCS profit rises by 2%; Announces dividend of Rs 27 per share

TCS, an Indian IT giant, announced its December quarter results today after market hours. The company reported revenue from operations at Rs 60,583 crore in Q3 FY24, representing a 3.6% YoY growth compared to the same quarter last year, where it was Rs 58,749 crore. In constant currency, the company exhibited a commendable 1.7% YoY growth.

The Operating Margin witnessed a notable expansion, reaching 25%, an increase of 0.5% YoY. Net profit soared to Rs 11,097 crore, reflecting around 2% YoY growth from Rs 10,883 crore in the same quarter last year. The Net profit Margin stood at 18.3% during the third quarter of FY24.

Furthermore, the company demonstrated strong financial discipline with Net Cash from Operations at Rs 11,276 crore, an impressive 102% of the Net Income.

As of December 31st, TCS boasts a workforce of 603,305, a testament to its scale and impact in the global IT landscape. The company submitted applications for 7,852 patents, with 187 applications filed during the quarter. Additionally, the company has been granted a total of 3,458 patents, including 305 patents granted in Q3.

Furthermore, the company maintains a strong position with an order book of USD 8.1 billion, reflecting its ability to secure future business, while the book-to-bill ratio stood at 1:1.

Business Segment Insights:

Sectoral Growth: Growth in Q3 was led by the Energy, Resources, and Utilities vertical (11.8%), Manufacturing (7.0%), and Life Sciences and Healthcare (3.1%). Despite challenges, TCS showcased resilience and adaptability.

Global Market Dynamics: Among major markets, the United Kingdom led with 8.1% growth, while Continental Europe grew 0.5%, and North America faced a marginal decline of -3.0%. In emerging markets, India led with an outstanding 23.4% growth, demonstrating TCS’s stronghold in its home market.

Dividend: 

The company announced a dividend per share of Rs 27, inclusive of a special dividend of Rs 18. The record date for eligibility is set for January 19, 2024, with the payment scheduled for February 5, 2024.

Share performance:

At the beginning of the day’s trading session, the stock opened at Rs 3,723 per share, indicating a flat opening compared to the previous day’s closing figure of Rs 3,713.70 per share on the BSE. Finally, the shares concluded the day at Rs 3,736.20 per share, representing a mere 0.61% increase from the last day’s closing price. The company’s current market capitalization stands at Rs 13,67,094 crore, and the stock has generated a return of a mere 2.6% in a month and a 12% return in the past year.

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