Tata Consultancy Services posts 1.3% rise in Q3 net profit at Rs 65.31 bn

The IT major announced dividend of Rs 7 per share; revenue rises 1.1% at Rs 309.04 bn

Tata Consultancy Services Ltd's reported marginal sequential increase of 1.3% in December quarter at Rs 65.31 billion as against Rs 64.46 billion in September quarter, hurt by a dip in spending by banking and financial services clients.

The IT major announced dividend of Rs 7 per share.

Revenue also rose 1.1% to Rs 309.04 billion as against Rs 305.41 billion in the previous quarter. 

On annual terms, the net profit dropped 3.6% when compared to Rs 67.78 billion in year ago period but revenue growth was 3.9% as against Rs 297.35 billion in December 2016.

TCS Ltd's numbers remained in line with Street estimates as retail and banking sector continued to drag in their largest market North America due to the holidays across major western markets like US and Canada.

"We wrapped 2017 with a strong performance in the December quarter, marked by signing industry-defining deals, robust client metrics and broad-based demand across industry verticals. As lagging parts of our portfolio turn around, and areas of softness reduce, we are well placed for stronger growth ahead," said Rajesh Gopinathan, CEO and MD of TCS. 

He added that the company signed its first over $50 million deal in 'Digital' this quarter.

"New deal ramp-ups, increasing traction in Digital, robust demand pick up in Retail and continuing momentum in most of TCS' industry verticals gave the company strong volume growth in a seasonally weak quarter," said TCS COO and Executive Director N Ganapathy Subramaniam.

TCS' digital revenue saw an increase of about 40% year-on-year and accounted for 22.1% of the company's revenues.

During the quarter, TCS saw its IT attrition rate (LTM) coming down 0.2% sequentially to 11.1%. It added 12,534 employees (gross) in the December 2017 quarter, taking its total headcount to 3,90,880 people.

On Thursday, TCS scrip on BSE closed 0.67% lower at Rs 2,788.