IT major TCS records strongest third quarter growth in 9 years, net profit rises 7.2%
The country’s largest software services firm TCS on Friday reported a 7.2 per cent rise in consolidated net profit to Rs 8,701 crore for the December 2020 quarter. This is against a net profit of Rs 8,118 crore in the year-ago period, Tata Consultancy Services (TCS) said in a regulatory filing.
Revenue of the city-based firm grew 5.4 per cent in the quarter under review to Rs 42,015 crore from Rs 39,854 crore in the corresponding period last fiscal, it added. This is the strongest December quarter growth in nine years, TCS said.
“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,” Rajesh Gopinathan, chief executive officer and managing director of TCS, said.
He added that the company is entering the new year on an “optimistic note” and its market position stronger than ever before. Gopinathan said TCS’ confidence reinforced by the “continued strength in our order book and deal pipeline”.
V Ramakrishnan, chief financial officer at TCS, said the company saw strong growth across all its verticals. Operational benefits from its SBWS (Secure Borderless Workspaces) model allowed it to post the highest operating margin in the last five years, even after rolling out a salary increase this quarter, he added.
“This and our strong balance sheet position us very strongly to seize the opportunities that the current market offers, and more closely partner our customers in their growth and transformation journeys,” he added.
TCS has declared an interim dividend of Rs 6 per share. The company’s consolidated headcount stood at over 4.69 lakh at the end of December 2020.
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