New Delhi: IT major Tata Consultancy Services (TCS) on Friday reported 7% increase in net profit for the quarter ending 31 December, 2020 at ₹8,701 crore as against ₹8,118 crore in the year-ago period. The company benefited from greater demand for its cloud services during the Covid-19 pandemic.
The company’s revenue rose 5% to ₹42,015 crore from ₹39,854 crore in the corresponding period last fiscal, it added.
The company announced interim dividend of ₹6 per share for which the record date is 16 January and payment date is 3 February. The Mumbai-based company said revenue from the banking and finance industries, its top revenue contributor, jumped 7.6% year-over-year to ₹16,655 crore in the December-quarter. This is the strongest December quarter growth in nine years, TCS said
On Friday, the company’s scrip on BSE closed nearly 3% higher at ₹3,120.35. Its shares are up 38% over the past year, outperforming the Sensex’s 19% climb.
“Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS.
“Looking beyond the immediate business growth opportunity, we are tremendously excited by what lies ahead. Cloud is enabling a new class of boundaryless organizations, that can seamlessly partner and collaborate within larger ecosystems to create innovative purpose-driven offerings to customers. This boundaryless value creation, supported by the seamless fabric of technology enabled by cloud together the seamless fabric of talent enabled by our SBWS™, will redefine industry after industry over the longer term. Our intimate knowledge of our customers’ business contexts, our strong relationships across ecosystems, and our continued investments in research and innovation make us their preferred partner in their growth and transformation journeys,” he added.
TCS has recently announced acquisitions such as of the IT unit of Deutsche Bank AG and Pramerica Systems, a unit of Prudential Financial Inc., which could help it expand into new areas.
“Our Q3 growth is a very satisfactory outcome of our ability to leverage the proactive investments made to capture the strong demand and be meaningful to our clients. It is a strong endorsement of our resilience, way of working and the relative competitiveness of our products and services. We celebrated the accomplishment of our Enterprise Agile by 2020 vision during the quarter, and with SBWS™, we have a well-oiled location-independent execution model that brings in the resources just in time, efficient execution, and machine-led delivery governance that are delighting our customers. All these augur well to progress our 25×25 future of work vision,” said N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, TCS.
Earlier this week, Tata Sons tendered shares worth ₹9,997 crore of Tata Consultancy Services during the IT major’s ₹16,000 crore-buyback offer.
The single largest shareholder of TCS, Tata Sons tendered more than 3.33 crore shares during the offer, according to a regulatory filing.
TCS said over 5.33 crore equity shares were bought back under the offer at a price of ₹3,000 apiece and out of the total, Tata Sons’ 3,33,25,118 shares were accepted under the buyback offer.