TCS Q3 results update
Last updated: 08 Jan, 2021 | 03:21 pm
- Net Profit: TCS has reported a 3.2% on-quarter rise in net profit to Rs 8,701 crore in Q3FY21. This is the highest third quarter growth in 9 years.
- Revenue beats estimates: TCS's revenue rose 4.7% on-quarter to Rs 42,015 crore, higher than the estimated Rs 41,231 crore. TCS's revenue grew across all verticals. The table below shows the QoQ difference in sales for all verticals of TCS.
- Margins expand: Operating margin of the company expanded 0.4% on-quarter to 26.4%. Net margin stood at 20.7%. TCS's revenue and margin outperformance came on the back of strong deal wins. The company reported deal wins of $6.8 billion during the quarter.
- Dividend: The board recommended an interim dividend of Rs 6 per share. This will be paid on Feb 3, 2021. The company has fixed Jan 16th as the record date.
TCS has reported very strong results in Q3FY21, backed by strong deal wins and revenue pick-up across all segments. TCS said that a growing demand for core transformation services and strong revenue conversion from earlier deals has helped the company to handle seasonal headwinds.
While the ongoing pandemic has affected various businesses, it has forced a tectonic shift in businesses processes to move towards greater digitization. This has provided a good opportunity for the IT industry. Given its leadership position in the market, TCS is well-placed to take advantage of this shift
The company is entering the New Year on a strong note. While it has not provided any revenue guidance for the year, the company is confident of taking advantage of strong demand pipeline going forward.