TCS Q3 results: Revenue surpasses expectations, yet profit falls short of estimates

TCS reports 8.2 pc growth in Q3 net profit at ₹11,735 cr.

Updated on: Jan 11, 2024, 18:45:00 IST

By HT News Desk

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Tata Consultancy Services, the country's largest software exporter on Thursday reported an 8.2 per cent growth in net profit for the December quarter at ₹11,735 crore.

The company said its revenue for the reporting quarter grew 4 per cent to ₹60,583 crore driven by strong double-digit growth in emerging markets, led by India.

The net profit for the period reached ₹11,060 crore, showing a nearly two per cent year-on-year rise, albeit impacted by legal settlement. T

The results surpassed most analyst expectations, with the British business showing an 8.1 per cent increase, offsetting a three per cent decline in North American market revenue.

"Our strong performance in a seasonally weak quarter buffeted by macroeconomic headwinds demonstrates the strength of our business model," chief executive K. Krithivasan said in a statement.

"We are seeing strong deal momentum across markets resulting in a solid order book providing visibility into our long-term growth."

ALSO READ- Infosys Q3 results: Profit misses view on weak demand, narrows sales forecast

Meanwhile second-ranked Infosys missed third-quarter profit estimates. Smaller rivals Wipro and HCLTech are set to report their earnings on Friday.

TCS said it was hard to predict a recovery in demand for IT services in the next two quarters as persistent inflation and recession fears pressure client spending in the company's key markets - the U.S. and Europe.

"From our perspective, the (macro) situation hasn't changed much," Krithivasan said.

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