TCS Q3FY23 net profit rises 11%, announces dividend of Rs 75 per share

IT major Tata Consultancy Services (TCS) declared its earnings for December quarter on Monday. TCS posted profit of Rs 10,883 crore in Q3FY23 as against Rs 9,806 crore year-on-year (YoY). This is a 10.98 per cent jump YoY. The company also recorded a 19 per cent jump in its revenue in Q3FY23 at Rs 58,229 crore. On sequential basis, the revenue was up 5.2 per cent.

On a sequential basis, the company’s profit jumped by 3.99 per cent, from Rs 10,465 crore in quarter-ended September.

The total income of the company stood at Rs 50,833 crore in this quarter, compared to Rs 43,070 crore YOY, rising by 18.02 per cent. On QoQ basis, the income grew by 10.98 per cent.

With the results, the company announced a dividend of Rs 75 per share. It will have an interim dividend of Rs 8 per share and a special dividend of Rs 67 per equity share. It will be paid on Febryary 3, 2023.

“We would like to inform you that at the Board Meeting held today, the Directors have declared a third interim dividend of Rs 8 and a special dividend of Rs 67 per Equity Share of Rs 1 each of the Company,” the company said.

In the BSE filing, the company said that the net headcount decreased by 2,197 people and the total workforce stood at 613,974. The attrition was still above 20 per cent at 21.3 per cent in Q3FY23. In Q3FY22, the attrition was 15.3 per cent and in Q2FY23, it was 21.5 per cent.

The growth was led by North America and UK.

“We are pleased with our strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and UK. The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves, while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust,” Rajesh Gopinathan, CEO and MD of the company said.