HomeWhat's TrendingTCS Posts 1.95% Rise in Q3 Profit After $125 mn Legal Claim

TCS Posts 1.95% Rise in Q3 Profit After $125 mn Legal Claim

Mumbai: Despite a $125 million legal settlement, Tata Consultancy Services (TCS), India’s IT giant, posted a 1.95% rise in Q3 net profit to ₹ 11,058 crore, showcasing resilience in a turbulent market.

Key Takeaways

  • Profit Increase: While modest, the profit growth reflects TCS’s diversified portfolio and customer-centric approach, navigating headwinds.
  • Revenue Rise: Revenues climbed 4% to ₹ 60,583 crore, indicating continued organic growth.
  • Legal Setback: The $125 million provision for a US legal claim impacted financials but didn’t overshadow overall performance.
  • Dividend Delight: Shareholders rejoice with a ₹ 27 per share dividend declared.
  • Market Growth: UK leads with 8.1% growth, while North America declines 3% due to macro factors. Emerging markets shine with India at 23.4% growth.
  • CEO Optimistic: K Krithivasan, MD & CEO, highlights strong deal momentum and increasing interest in Generative AI, propelling long-term growth.
  • Focus on India: Subramaniam, COO, emphasises progress in national projects and strong performance of TCS products and platforms.
  • Talent Update: Attrition dips to 13.3%, with focus on campus hiring and organic talent growth.

Despite the legal overhang, TCS’s Q3 results showcase a robust business model and promising growth signals. The company’s continued focus on diversifying markets, investing in new technologies, and nurturing talent positions it for future success.

Monika Shanmugam