TCS reports 24% YoY rise in Q3 net at Rs 8,105 crore

IT bellwether Tata Consultancy Services (TCS) on Thursday reported a 24.1 per cent YoY rise in its net profit at Rs 8,105 crore for third quarter of FY19. The company had posted PAT of Rs 6,531 crore in the corresponding quarter last year. On QoQ basis, PAT grew 2.58 per cent.

Revenue for the quarter came in at Rs 37,338 crore, up 20.8 per cent YoY. 

"We are wrapping up 2018 with a strong revenue growth of 12.1% in the December quarter, which is the highest in 14 quarters, with continued growth acceleration in key verticals and across all geographies. The strong client metrics, industry leading growth in digital services, a very strong order book and deal pipeline are all validations that customers recognize our differentiated capabilities and are picking us for their growth and transformation programs," said Rajesh Gopinathan, Chief Executive Officer and Managing Director

The company's board also declared an interim dividend of Rs 4 per equity share.

Revenue in constant currency terms grew 1.8 per cent QoQ and 12.1 per cent YoY. Operating margin saw an expansion of 0.4 per cent YoY at 25.6 per cent. Earnings per share (EPS) during the said period was at Rs 21.60, up 26.6 per cent YoY. 

Digital accounted for 30.1 per cent of the revenues, registering year-on-year growth of 52.7 per cent.

The company's Chief Financial Officer V Ramakrishnan said despite headwinds from the rupee volatility against various currencies, and the higher cost of doing business in some major markets, TCS' operating margins have been resilient.

"We remain focused on driving rigour in our operations, generating strong cash flows and steering profitability back to our preferred range, while continuing to invest strongly for future growth," he added.

During the October-December 2018 quarter, TCS added 6,827 people (net), taking the overall employee strength to 4,17,929 employees. Attrition rate was at 11.2 per cent on last twelve months (LTM) basis.