TCS Q3 net profit rises 12%, announces Rs 18,000-cr share buyback

The company reported revenue for Q3FY22 was at Rs 48,885 cr, up 16.3% YoY and 4.3% QoQ

IT major Tata Consultancy Services (TCS) on Wednesday reported net profit of Rs 9,763 crore for the third quarter of FY22, up 12.2 per cent year-on-year. Profit for the quarter grew 1.4 per cent on a sequential basis.

The Mumbai-headquartered company also announced buyback worth Rs 18,000 crore at Rs 4,500 per share. The company reported revenue for Q3FY22 was at Rs 48,885 crore, up 16.3 per cent YoY and 4.3 per cent QoQ.

The company stated that the total contract value (TCV) for Q3FY22 was at $7.6 billion as compared to $6.8 billion in Q3FY21. The TCV for Q2FY22 was at similar level of $7.6 billion.

In US dollar terms, the company’s revenue, at $6,524 million, was up 3 per cent QoQ. In terms of constant currency growth, TCS revenue grew 4 per cent QoQ strongest growth in Q3 in the last five years.

EBIT for the quarter came in at 25 per cent, margins were impacted due to increased focus o hiring and retention of talent, said the company. This quarter saw the company giving promotions to 110,000 employees.

During the quarter, the company added 28,238 employees, the highest ever added till date. Despite these measures, attrition inched to 15.3 per cent, though lower to industry peers but higher compared to Q2FY22 of 11.9 per cent.

TCS added 10 new clients in the $100 million-plus bracket during the quarter taking the total to 58. 21 clients were added in $50 million-plus bracket taking the number to 118 and 98 new clients were added in $1 million range.

Growth was led by North America which is also the top revenue generator for the company at 18 per cent YoY, followed by Continental Europe, UK and Latin America. India business once again reported double digit growth with 15.2 per cent YoY growth.

Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “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.”