Tata Consultancy Services (TCS) shared its financial results for the current financial year's October–December quarter on Monday. The net profit of the company for the quarter was ₹10,657 crore.
Profit and Revenue Performance
- The net profit saw a decrease of 14 percent in comparison to the previous year when the figure was ₹12,380 crore for the same quarter. The decline was 12 percent when the current quarter with net profit of ₹12,075 crore was compared with the previous quarter.
- TCS reported revenue growth despite the profit drop. The company annualized revenue increased in the quarter by 5 percent to ₹66,087 crore as compared to last year when it was ₹63,973 crore. In terms of quarter-to-quarter comparison, revenue grew by 2 percent.
Dividend Announcement
TCS declared two dividends along with the results:
- Third interim dividend of ₹11 per share
- Special dividend of ₹46 per equity share
January 17 was set as the record date. The dividend payment will take place on February 3.
Business Outlook and Deal Wins
- K. Krithivasan, CEO and MD of TCS, mentioned that the company is anticipating growth in the near future. The revenue from AI services was reported to have increased by 17 percent and to have reached $1.8 billion during the quarter.
- Also, TCS had new business worth $9.3 billion in the October–December period.
Employee Strength and Cost Impact
- The company announced a decrease in staff count. Over the three months ending in December, the headcount was cut by 11,151 employees. Currently, the total employee count is 582,163.
- TCS also pointed out that the new labor code implementation had an adverse effect of ₹2,128 crore on the company’s revenue.
Share Price Movement
After the announcement of results, TCS shares closed at ₹3,235.70 on the BSE, which is a 0.86 percent rise.
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