India’s IT giant and world’s 2nd most valuable IT services brand, TCS saw its Q3 FY ’23 revenues beat estimates. Although positive, its profits remained below market expectations in Q3. On the back of positive results, the company announced a dividend of Rs. 75 per share that will be paid out to existing shareholders on February 3, 2023.
Here’s a summary of TCS’s Q3 FY ’23 financial results.
Positive financial performance
| Q3 FY23 | Q3 FY22 | % Change | |
| Revenues | Rs. 58,229 cr | Rs. 48,885 cr | +19% |
| Consolidated Net Profit | Rs. 10,846 cr | Rs. 9,769 cr | +11% |
Company’s revenues of Rs. 58,229 cr this quarter were mainly driven by rising demand for its cloud services, consulting services, cyber security and enterprise application services. Although revenue beat market expectations, profits were below market expectations at Rs. 10,846 cr.
In US Dollar terms, the company has crossed the quarterly revenue milestone of $7 billion this quarter.
TCS declares dividend
The company board declared a special dividend of Rs. 67 per equity share and an interim dividend of Rs. 8 per share. This will allow existing shareholders to earn a total dividend of Rs. 75 per share. Shareholders holding securities of the company as of Jan 17, 2023 will be eligible for the dividend to be received on Feb 3, 2023.
Did you know?
TCS has announced 77 dividends since its listing in October 2004. The company paid two interim dividends of Rs 8 per share each In preceding two quarters of July and October 2022.
TCS hiring slowed down
TCS stated that its net headcount went down by 2,197. The company added that its attrition rate was lower during the quarter at 21.3%. The company’s total workforce strength was at 6,13,974.
While announcing its Q3 results, the IT player said that it will be hiring over 1.25 lakh staff in FY24. This further conveys the company’s long-term growth focus.
Leadership speaks
Rajesh Gopinathan, Chief Executive Officer and Managing Director of TCS commented on the company’s results as – “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.”
He further added, “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.”
Conclusion
TCS carries a strong brand value worth an estimated $17 billion. This is mainly attributed to the company’s continued focus on its brand-related and employee investments. It has also maintained sustainable investments in establishing deep technological capabilities apart from research and innovation. The company’s constant prioritization of customer-focused contextual knowledge is another factor that will drive its future growth.
FAQs
TCS announced its Q3 FY23 results on January 9th 2023.
You will be eligible to receive dividend from TCS stocks if you are holding the company’s stocks as of January 17th, 2023.
TCS will give out dividend to existing shareholders on February 3rd, 2023.
Yes, TCS is a well-established Indian IT major.
