IT services major Tata Consultancy Services
- Signs 58 deals including 10 new $100mn-plus clients and 21 new $50 mn-plus clients
- 25% margin, 60bps lower than Q2
- Hired 43000 freshers in H1
- Recruited 34,000 freshers in Q3
Bengaluru: IT services major Tata Consultancy Services (TCS) on Wednesday announced a strong set of third quarter performance with sound revenue growth and a robust deal pipeline. The company, which touched $25 billion annual revenue run rate, announced a buyback worth Rs18,000 crore at Rs 4,500 per share.
The Tata group company reported a consolidated net profit growth of 12.3 per cent to Rs 9,769 crore from Rs 8,701 crore in the corresponding quarter last year. Its consolidated revenue in Q3 stood at Rs 48,885 crore, up 16.4 per cent from the year-ago quarter on the back of healthy double-digit growth across business verticals.
Revenues in dollar term were at $6.52 billion for the quarter, which was a growth of 15.4 per cent over the same period of last year.
"Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers' business transformation needs. Customers love our engagement model, our end-to-end capability, and our can-do approach to problem solving. While mapping out their innovation and growth journeys, we are also helping them execute new-age operating model transformations to support those journeys," said Rajesh Gopinathan, CEO MD of TCS.
For the just ended December quarter, TCS won a healthy set of large and mid-size deals that put it on a comfortable position to drive future growth. It added 10 new $100 million-plus clients, taking the total to 58 and 21 new $50 million-plus clients. In the third quarter, the IT major reported an operating margin of 25 per cent, 60 basis points lower than the previous quarter.
TCS' attrition rate rose to 15.3 per cent (voluntary TTM) on a trailing 12-month basis.
TCS has hired 34,000 fresh graduates in the third quarter in addition to 43,000 freshers in first half of the current financial year.
"The ability to attract and retain top quality talent across the world has been central to TCS' business success and a source of competitive differentiation. We continue to set new records in talent acquisition. In addition to the 43,000 freshers we hired in H1, we onboarded 34,000 fresh graduates in Q3 – which is higher than our full year fresher hiring numbers in prior years. On the talent retention side, we continue to be the industry benchmark," said Milind Lakkad, chief HR officer.
The company has added net headcount addition of 28,238 during third quarter, taking the total workforce strength to 556,986. Meanwhile, the company announced a share buyback worth up to Rs18,000 crore.
"The Board of Directors at its meeting held has approved a proposal to buy-back up to 4,00,00,000 equity shares of the company for an aggregate amount not exceeding Rs18,000 crore being 1.08 per cent of the total paid up equity share capital at Rs4,500 per equity share subject to approval from shareholders," TCS said in an exchange filing.
