TCS Records Robust Growth Amid Volatile Conditions

Tata Consultancy Services (TCS) reported a 12% rise in net profit for Q3, totaling Rs 12,444 crore. The IT giant also saw revenue growth of 5.6% for the October-December quarter. Strategic investments and efficient management were cited as key factors for this success amidst economic challenges.

Tata Consultancy Services (TCS), a leading player in the IT services sector, has posted a significant 12% increase in net profit for the third quarter, as reported in its earnings released this Thursday. The net profit for the December quarter rose to Rs 12,444 crore, compared to Rs 11,097 crore in the previous year.

The release of TCS's Q3 earnings marks the start of the corporate earnings season for the October-December period, offering insights into the fiscal health of India Inc. Over the April to December timeframe, TCS's combined net profits rose by 8.6% to reach Rs 36,504 crore, showcasing the company's consistent growth trajectory.

Regarding operational revenue, TCS reported a substantial 5.6% rise, bringing in Rs 63,973 crore this December, as opposed to Rs 60,583 crore the previous year. The three quarters combined yielded a 6.2% increase, totaling Rs 190,845 crore. Despite facing cross-currency volatility, TCS managed robust execution and cost management, which led to improved margins and healthy cash flows, according to Samir Seksaria, TCS's Chief Financial Officer.

Addressing the workforce dynamics at the end of December 2024, TCS recorded a workforce strength of 607,354, with a 13% attrition rate. The company maintained a 35.3% representation of women in its workforce. Milind Lakkad, Chief HR Officer, noted the promotion of over 25,000 employees this quarter, aiming to enhance employee skills and wellness further.

Furthering its commitment to innovation, TCS applied for 8,549 patents by December 31, 2024, securing 4,585 patents, demonstrating a significant investment in research and development. TCS's outlook remains positive, with ongoing investments in talent and infrastructure paving the way for sustained growth.

(With inputs from agencies.)