TCS Reports Strong Q3 Earnings and Special Dividend Announcement

Revenue and Profit Performance

TCS, a leading IT company, commenced the Q3FY24 earnings season with robust results, recording a quarterly revenue of ₹60,583 crore, marking a 1.5% increase from the previous quarter. In US Dollar terms, the revenue amounted to $7,281 million for the same period. The company’s adjusted net profit witnessed a notable uptick, reaching ₹12,016 crore, reflecting a 6% increase compared to the previous quarter.

Dividend Declaration

In addition to its strong financial performance, TCS announced an interim dividend of ₹9 per share alongside a special dividend of ₹18 per share, culminating in a total dividend payout of ₹27 per share. Shareholders can expect to receive the dividend on February 5, 2024.

EBIT and Deal Wins

TCS reported an EBIT (Earnings Before Interest and Tax) of ₹15,155 crore during the quarter, indicating a sequential increase of 4.6%. Despite the impressive financials, deal wins for the quarter amounted to $8.1 billion, falling short of the $11.2 billion achieved in the previous quarter.

Workforce Dynamics

The company experienced a reduction in its total workforce for the second consecutive quarter, with attrition levels decreasing to 13.3%. The headcount dropped by 5,680 employees to 603,305 by the end of the third quarter of FY23-24. TCS emphasizes the diversity of its employee base, with 35.7% representation from women and a workforce comprising individuals from 153 nationalities. Notably, TCS employees have accumulated 39.7 million learning hours year-to-date and acquired 3.7 million competencies, including 515,000 high-demand competences.

Milind Lakkad, Chief HR Officer, reaffirmed TCS’s commitment to recruiting from college campuses and nurturing talent internally.

Market Performance

On Thursday, TCS shares closed 0.37% higher at ₹3,726.70 on the NSE. Despite a slight decline in performance year-to-date, the stock has witnessed a significant uptick of close to 12% over the past year.

In summary, TCS’s strong Q3 performance, coupled with its dividend announcement and strategic workforce initiatives, underscores its resilience and commitment to sustainable growth amidst evolving market dynamics.