TCS Q3 net up 11% at Rs 6,778 cr, beats Street on strong digital revenue

Revenue grew 8.7% to Rs 29,735 cr on strong execution and 30% jump in revenue from digital services

"Alongside a good growth performance, we have been able to keep profitability stable in our desired range and deliver over USD 1 billion in free cash flow during the quarter," TCS Chief Financial Officer Rajesh Gopinathan said.

The company declared a dividend of Rs 6.5 per share and its earnings per share (EPS) stood at Rs 34.40. 

TCS said employee addition during the quarter stood at 18,362 (gross) and 6,978 (net), taking the overall count to 3,78,497 people.

The total attrition rate fell to 11.3% in IT services; it was at 12.2% including BPS. The percentage of women employees at the company rose to all-time high of 34.6%.

"Our efforts and investments to build professionals with the right digital skills continues and now more than 1.9 lakh TCSers are equipped with new capabilities to help our customers with their transformations. We are also happy that our retention rates continue to rise as we remain engaged with our employees to help them succeed in a digital world," TCS Executive Vice President and Global Head (HR) Ajoy Mukherjee said.

During the third quarter, growth was led by energy and utilities (up 5.8% sequentially), Hi-Tech (2.6%), banking, financial services and insurance (2.1%), manufacturing (2.1%) and retail (1.9%) in constant currency.

From a geography perspective, emerging markets like Latin America and India clocked double digit growth of 12.5% and 10.3% sequentially.

North America grew 2.2% quarter-on-quarter, while the UK was up 1.7%.