Tata Consultancy Services Ltd (TCS) on Monday reported 8.2% rise in consolidated net profit to ₹11,735 crore for October-December 2022 quarter, aided by strong double-digit growth in India and other emerging markets.
Revenue for the third quarter rose by 4% year-on-year to ₹60,583 crore. In constant currency terms, revenue grew 1.7% over same quarter last fiscal.
“Performance Shows Strength of Business Model”
“Our strong performance in a seasonally weak quarter buffeted by macro headwinds demonstrates the resilience of our business model,” said CEO and MD K Krithivasan.
He highlighted that even as global economic uncertainty persists, TCS is seeing robust deal intake across geographies providing revenue visibility.
Customer Interest Rising in AI
“We are seeing tremendous interest in Generative AI and are leading innovation efforts for customers in this area,” Krithivasan added.
During the quarter, TCS took a one-time $125 million charge to settle legal claims where total amount sought was $140 million.
Making Headway on Strategic Projects
“We made significant progress on strategic national projects like BSNL 4G/5G rollout. We continue upskilling employees in Generative AI using our AI playground,” said COO N Ganapathy Subramaniam.
About 65% of staff are working from TCS offices currently, with rest expected to return by FY23-end. TCS will restart campus hiring next fiscal.
Attrition rate moderated to 13.3% versus 14.9% last quarter. Growth was led by Energy & Utilities, Manufacturing and Life Sciences verticals.
But Banking, Financial Services, Communications, Media and Technology segments saw revenue decline over last year. Among geographies, India led with 23.4% rise followed by Middle East, Latin America and Asia Pacific.
“Though global situation on ground unchanged, we see strong order book providing long-term growth visibility,” said Krithivasan.
