Tata Consultancy Services has reported a consolidated net profit of Rs 9,769 crore for the quarter ended December 31, 2021 registering a 12.3 percent year-on-year (YoY) growth from Rs 8,701 crore a year ago.
India's largest IT services company, announced a Rs 18,000-crore buyback offer for its shareholders at Rs 4,500 per scrip.
Revenues grew 16.3 percent in the quarter under review to Rs 48,885 crore from Rs 42,015 crore in the corresponding period last fiscal, TCS said in a regulatory filing.
''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,'' TCS CEO and Managing Director Rajesh Gopinathan said.
The company has also announced a dividend of Rs 7 per share with the record date being set as January 20, 2022, and the payment date as February 07, 2022.
N Ganapathy Subramaniam, chief operating officer and executive director of TCS, said the company has crossed an important milestone of hitting the USD 25-billion revenue mark in the calendar year 2021.
TCS Chief Financial Officer Samir Seksaria said, ''Our sustained investment in talent has helped us power strong growth despite a challenging supply environment. We remain focused on long-term talent development as well as on tactical measures to mitigate the talent churn.''
The company has exercised various operating levers in the third quarter to mitigate the higher costs and manage its employee expenses, Seksaria said.
The company added 28,238 employees on a net basis, taking the total number of employees to 5,56,986 as on December 31, 2021.
Its IT services attrition rate (LTM) in the third quarter stood at 15.3 per cent.
TCS Chief HR Officer Milind Lakkad said, ''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.''
He said that the company has been able to retain its best talent and overcome supply-side challenges, ''by continuing to invest in our people, giving preference to internal candidates for the most exciting open positions, providing global deployment opportunities, fast track career paths linked to learning, and promotions to over 110,000 employees''.
'Revenues beat estimates'
Prashant Tapse, Vice President (Research) at Mehta Equities Ltd., said, "Revenue beats Street expectations while misses on margins. IT major India's largest software exporter TCS reported better-than-expected quarterly earnings beating all street expectations. Quantum of buyback is much more then we expected and the buyback rate at Rs 4,500 premium of 16.67 percent over the last traded price of the stock is also over and above street expectations. In the constant currency terms, the revenue grew 15.4 percent and on operating margin stood at 25 percent for the quarter, down 1.6 percent year-on-year. It has added 10 new $100 million-plus clients during the quarter, taking the total to 58. It also added 21 new $50 million-plus clients, taking the total to 118. TCS also announced a third interim dividend of Rs 7 per share.
"Based on the results outcome, we expect stock would react positively tomorrow (January 13), which would be on the back of premium buyback price and we are overall optimistic on the stock with medium to long term horizon."
