TCS, which is the largest IT company by market capitalisation in India , declared its Q3 results on 12th January, 2022. In a first, the company decided to announce its results on the same day as that of peers – Infosys and Wipro.
TCS posted a consolidated net profit of Rs. 9,769 crores for the quarter ended December, up 12% YoY. TCS’ revenue from operations rose an impressive 16% to Rs. 48,885 crores from Rs. 42,015 crores reported in the corresponding quarter last year.
Net cash from operations stood at Rs. 10,853 crores for Q3 FY22. Operating margins, however, stood at 25% for the quarter, down 1.6% YoY. This is likely, in large parts, due to the increased cost of employee retention.
The attrition rate rose to 15.3% on a trailing 12-month basis for TCS, it seems to be below that reported by peers Infosys at ~25% and Wipro at ~20%.
The various segments of the company posted more than 15% growth seen in all sections. Led by its digital transformation business and a healthy Q3, the company has managed to register $25 billion in revenue in 2021.
In the December quarter, TCS has also managed to add 10 new clients in the $100 million-plus category and 21 new clients in the $50 million-plus category.
TCS buyback proposal has been approved by the board. The proposal is to buy back up to 4 crore equity shares for an aggregate amount of around Rs. 18,000 crore. This is 1.08% of the total paid-up equity capital at Rs. 4,500 per share (at nearly Rs.643 premium from the current share price).
The company also declared an interim dividend of Rs. 7 per equity share. However, TCS closed 1.43% down at Rs.3859.90 at the end of the trading session for the day.
Among major markets, growth was led by North America (+18%) and Continental Europe (+17.5%) while UK grew +12.7%. Among emerging markets, growth was led by Latin America (+21.1%) and India (+15.2%), followed by Middle East & Africa (+6.9%) and Asia Pacific (+4.3%).
Have a look at how various segments performed on a YoY basis.
Here are a few interesting new bits that kept the investors and markets running on TCS
With Omicron concerns and the Government facing never-ending issues through projects with other IT giants, could this truly be TCS’s moment to shine?
Samir Seksaria, Chief Financial Officer, said: “Our sustained investment in our talent has helped us power strong growth despite a challenging supply environment. We remain focused on long term talent development as well as on tactical measures to mitigate the talent churn.”
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