TCS Q3 Revenue Narrowly Misses Estimates, Net Profit up 14 Percent

TCS reports slightly weaker than expected third quarter revenue; seasonal weakness exacerbated by Chennai floods.

N Chandrasekaran, Managing Director and Chief Executive, TCS (Photo: Reuters)

• Dollar revenues rose just 0.5 percent sequentially in constant currency terms to $4.12 billion.
  
• Rupee revenue grew 0.7 percent QoQ for the quarter-ended 31 December, while on a YoY basis it recorded a growth 11.7 percent.
  
• Digital business grew at 4 percent sequentially, which contributes 13.7 percent of revenues.
  
• The company has declared a third interim dividend of Rs 5.50 per equity share of Rs 1 each of the company.
  

Country’s largest software exporter TCS on Tuesday reported 14.2 percent jump in profit to Rs 6,083 crore for the third quarter of the current fiscal.

The company had reported a net profit of Rs 5,328 crore in the October-December period of last fiscal. The operating profit was at Rs7,276 crore in the reported quarter. Its revenues were up 11.7 percent to Rs 27,364 crore in the third quarter, 2015-16, from Rs 24,501 crore in the corresponding period of 2015-15.

<p>All our industry segments have exhibited growth in a traditionally weak quarter, additionally accentuated by the impact of the Chennai floods.</p>

<b>N Chandrasekaran, Managing Director and Chief Executive, TCS</b>

“Our international business has grown smartly in constant currency terms with North America and Europe leading the way among major markets and Latin America among growth markets,” he said. He added that digital business continues to be the core focus for enterprise IT in 2016 as customers respond to competition in a global economy driven by real-time insights.

<p>With 13.7 percent of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers.</p>

<b>N Chandrasekaran</b>

TCS said the growth was “holistic” with all industry segments showing sequential growth with life sciences and healthcare, manufacturing and Hi-Tech leading the way. The company declared a dividend of Rs 5.50 per share which has a face value of Re 1, and its earnings per share (EPS) stood at Rs 31.01.