Tata Consultancy Services (TCS) has beaten market expectations and delivered another winning performance in the quarter ending December 2020. It reported its strongest third quarter results in nine years, thanks to COVID-induced acceleration in tech adoption.
The overall profit of the company stood at ₹8,701 crore, up by 16.4% over the second quarter.
TCS, India’s largest IT services company, reported a revenue growth of 4.7% over the previous quarter. Its consolidated revenues stood at ₹42,015 crore, growing by 5.4% when compared to the same period last year.
“Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, commenting on the company’s performance this quarter.
The company’s margins grew by 40 basis points, closing at 26.6% for the quarter, this despite the wage hikes rolled out in October. 100 basis points make 1%.
Its attrition rate stood at 7.6%, which is its lowest so far. The company added 15,721 new employees in the last three months.
TCS has also rolled out salary hikes in this quarter. Its attrition rate stood at 7.6%, which is its lowest so far. The company added 15,721 new employees in the last three months.
The company’s shares continued their upward rally in trade today, closing nearly 3% higher in anticipation of strong earnings. The company’s market capitalization is closing in on the ₹12 lakh crore mark.
“From our perspective, we believe this momentum is very strong, we believe this will continue in FY21 and FY22,” Gopinathan further added, commenting on the earnings surprise.
TCS has declared an interim dividend of ₹6 per share.
(With inputs from agencies)