Q3FY23 shows an 11% jump in TCS’s net profit. The company declares a special dividend. Read full deatils

TCS posts 11% jump in net profit after Q3FY23

Q3FY23 shows a jump

Tata Consultancy Services (TCS) is India’s largest IT company, delivering a stable performance over the years. Recently, the company published its financial reports for the third quarter of the financial year 2022-23. The reports showed an 11% jump in the company’s net profits, prompting the declaration of a special dividend.

Let’s find out the major financial highlights from TCS’s quarterly reports.

Related - Check out the stocks having the highest market capitalization

Highlights from TCS’s financial reports of Q3FY23

  • Net profit

As stated earlier, the company’s net profit jumped 11% annually. The net profit was reported at Rs.10,883 crores in the third quarter (October-December) of the financial year 2022-23. Compared to the net profit this year, the profit in the third quarter of the financial year 2021-22 stood at Rs.9806 crores.

Though the net profit has jumped, it was below the analyst estimate of Rs.11,049 crores.

  • Revenue 

When it came to revenue, TCS delivered a stellar performance. The revenue grew both annually and sequentially. The quarterly jump was reported at 5%, while the annual jump was 19.1%. In constant currency terms, TCS’s revenue grew 13.5% on an annual basis.

The boost in the company’s revenue was driven by its verticals as well as by its international operations. Here’s how –

TCS financial reports
  • Margin

The company reported contracting margins as the operating margin reduced by 50 basis points annually to stand at 24.5%. The net margins also reduced sequentially by 50 basis points to 18.6%.

  • Order book

The company clocked significant deals in the third quarter in the digital workspace and customer experience. The company’s order book was reported at $7.8 billion.

  • Dividend

Following an impressive jump in revenue and profit, the company declared a final dividend of Rs 75 per share. This included a special dividend of Rs.67 per share and marked the seventh consecutive quarter when the company declared a dividend for shareholders.

  • Attrition

The company reported a reduced attrition rate which stood at 21.3% in the current quarter compared to 21.5% in the July-September 2022 quarter. The employee headcount was reported at 613,974.

The company’s management praised its performance despite a weak quarter in the IT segment. The company’s share price fell 15% over the last year, but the 5-year returns were recorded at 138%. Moreover, after the company declared its results, its share price jumped 3%.

So, if you have invested in TCS stock, know the company's financial performance to know how much dividend income you stand to receive. Moreover, knowing the company’s performance will also allow you to assess whether your investment is sound.

Related - Here's a comparative analysis of the leading IT stocks in India.

Tata Consultancy Services (TCS) is India’s largest IT company, delivering a stable performance over the years. Recently, the company published its financial reports for the third quarter of the financial year 2022-23. The reports showed an 11% jump in the company’s net profits, prompting the declaration of a special dividend.

Let’s find out the major financial highlights from TCS’s quarterly reports.

Related - Check out the stocks having the highest market capitalization

Highlights from TCS’s financial reports of Q3FY23

  • Net profit

As stated earlier, the company’s net profit jumped 11% annually. The net profit was reported at Rs.10,883 crores in the third quarter (October-December) of the financial year 2022-23. Compared to the net profit this year, the profit in the third quarter of the financial year 2021-22 stood at Rs.9806 crores.

Though the net profit has jumped, it was below the analyst estimate of Rs.11,049 crores.

  • Revenue 

When it came to revenue, TCS delivered a stellar performance. The revenue grew both annually and sequentially. The quarterly jump was reported at 5%, while the annual jump was 19.1%. In constant currency terms, TCS’s revenue grew 13.5% on an annual basis.

The boost in the company’s revenue was driven by its verticals as well as by its international operations. Here’s how –

TCS financial reports
  • Margin

The company reported contracting margins as the operating margin reduced by 50 basis points annually to stand at 24.5%. The net margins also reduced sequentially by 50 basis points to 18.6%.

  • Order book

The company clocked significant deals in the third quarter in the digital workspace and customer experience. The company’s order book was reported at $7.8 billion.

  • Dividend

Following an impressive jump in revenue and profit, the company declared a final dividend of Rs 75 per share. This included a special dividend of Rs.67 per share and marked the seventh consecutive quarter when the company declared a dividend for shareholders.

  • Attrition

The company reported a reduced attrition rate which stood at 21.3% in the current quarter compared to 21.5% in the July-September 2022 quarter. The employee headcount was reported at 613,974.

The company’s management praised its performance despite a weak quarter in the IT segment. The company’s share price fell 15% over the last year, but the 5-year returns were recorded at 138%. Moreover, after the company declared its results, its share price jumped 3%.

So, if you have invested in TCS stock, know the company's financial performance to know how much dividend income you stand to receive. Moreover, knowing the company’s performance will also allow you to assess whether your investment is sound.

Related - Here's a comparative analysis of the leading IT stocks in India.

NEWSLETTER

Related Article

Premium Articles

Union Budget