NEW DELHI: The country's largest software exporter Tata Consultancy Services (TCS) reported an 11% rise in December quarter net profit to Rs 10,846 crore.
TCS is the first among its peers to report quarterly earnings, setting the tone for an industry that is seeing demand wane after a pandemic-fueled boom.
Here are the key points from today's Q3 results:
* In a multi-year first, TCS reported a marginal decline of 2,197 people in its overall employee base for the December 2022 quarter but announced that it will be hiring over 1.25 lakh staff in FY24.
* Even though on a net basis people in the company reduced in Q3, in FY22, it added 1.03 lakh people to its overall staff and has hired over 55,000 people on a net basis already in FY23.
* Its overall revenue rose 19.1 per cent to Rs 58,229 crore for the reporting quarter, but it was a 0.5% narrowing of the operating profit margin to 24.5% that limited the overall profit growth.
* Chief operating officer N Ganapathy Subramaniam said of the overall staff, 1.25 lakh employees have spent over a decade at the company and called them as the fulcrum, which ensures timely deliveries of contracted services.
* The Tata group company's board also declared a dividend payout of Rs 75 per share, including a special dividend of Rs 67 per share, which will result in an outflow of Rs 33,000 crore in cash.
* TCS overall revenue rose 19.1% to Rs 58,229 crore for the reporting quarter, but it was a 0.5% narrowing of the operating profit margin to 24.5% that limited the overall profit growth.
* On the new deals front, the company reported a total contract value of $7.9 billion for the quarter, which CEO and MD Gopinathan said is in the mid-range of the target of $7-9 billion.
* Overall, the banking, financial services and insurance sector, which is the largest industry vertical for the company, has grown well and the company has no big worry in the segment even though insurance has shown some softness, Subramaniam said, adding that $2.5 billion in TCV came from the sector.
(With inputs from agencies)
