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TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates

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TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates

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Q3 Earnings Highlights: India Inc kicked off the earnings season with a mixed bag of earnings from the country's three largest IT companies: TCS, Infosys and Wipro. TCS reported revenue of Rs 48,885 crore for Q3, Infosys Rs 31,867 crore and Wipro Rs 20,432.3 crore. Both TCS and Infosys met but Wipro fell short of Street estimates on the revenue front. Wipro misses analysts' expectations on most grounds, but managed meet their margin estimates.

TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates
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  • TCS Q3 | Customers love our engagement model, end-to-end capability, can-do approach, says Rajesh Gopinathan

  • TCS Q3 | CFO Samir Seksaria says company remains focused on long-term talent development, tactical measures to mitigate talent churn

    “Our sustained investment in our 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," said Samir Seksaria, Chief Financial Officer, TCS.  

    "We have exercised various operating levers in Q3 to mitigate the higher costs and manage our employee expense,” he added.

  • TCS Q3 | CEO Rajesh Gopinathan says continued growth momentum validation of company's collaborative, inside-out approach to customer needs

    “Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers’ business transformation needs," said Rajesh Gopinathan, CEO and Managing Director, TCS.  

    "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,” he added.

    TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates
  • TCS Q3 | IT services attrition rate at 15.3%

    For the quarter ended September 2021, the company had reported an attrition rate of 11.9 percent. 

  • TCS Q3 | Constant currency revenue growth at 4%, beats Street estimates 

    Tata Consultancy Services reported constant currency revenue growth of four percent. Analysts in a CNBC-TV18 poll had expected the company to report growth of 2.8 percent. 

    TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates
  • TCS Q3 | Dividend of Rs 7 per share

  • TCS Q3 | Buyback valued at Rs 18,000 crore at Rs 4,500 per share

    Tata Consultancy Services' board approved a proposal to buy back up to four crore shares of the company for an aggregate amount not exceeding Rs 18,000 crore. (Read more on TCS buyback)

  • TCS Q3 profit up 1.5% QoQ at Rs 9,769 crore, misses Street estimates; revenue beats

  • TCS Q3 | Revenue at Rs 48,885 crore vs Rs 46,867 crore in previous quarter

    Tata Consultancy Services reported revenue of Rs 48,885 crore for Q3, as against Rs 46,867 crore for Q1. In dollar terms, the company posted revenue of $6,524 million for the October-December period, as against $6,333 million for the  previous quarter. 

  • TCS Q3 | Net profit up 1.5% at Rs 9,769 crore

    TCS reported a net profit of Rs 9,769 crore for the quarter ended December. The IT major had posted a net profit of Rs 9,624 crore for the previous quarter. 

    The company reported earnings before interest and taxes (EBIT) of Rs 12,237 crore for Q3, as against Rs 12,000 crore for Q2.

    Its EBIT margin came in at 25 percent as against 25.6 percent in the previous quarter.

  • Wipro shares to move marginally lower, dips can be used to accumulate: Prashanth Tapse

    Prashanth Tapse, Vice President (Research) at Mehta Equities, expects Wipro shares to move marginally lower in reaction to the Q3 numbers. "Such a move will give an opportunity to accumulate in the range of Rs 660-675. Overall, we are optimistic on the stock with a medium- to long-term horizon," he said. 

  • Wipro Q3 results in line with forecasts, stock can rise to Rs 780 this quarter: Gaurav Garg

    Gaurav Garg, Head of Research at CapitalVia Global Research, said Wipro's financial results for Q3 were in line with forecasts. "The management said the order book has gone strong in the last 12 months. It has also seen an increase in operating margins, further strengthening the company’s financial position. We expect Wipro (shares) to have a positive opening on Thursday and we can expect the price to rise to the levels of Rs 780 in this quarter," he said. 

  • Expect IT stocks to double in 3 years: Edelweiss Securities' Sandip Agarwal 

    Sandip Agarwal, Research Analyst-Institutional Equities at Edelweiss Securities, is positive on the IT sector, and expects it to perform well over the next 2-3 years. (Here's what he said ahead of today's earnings announcements)

  • Wipro Q3 margin exceeds Street estimates

  • Infosys Q3 results beat all expectations: Mehta Equities' Prashanth Tapse

    Prashanth Tapse, Vice President (Research) at Mehta Equities, said Infosys's quarterly earnings were better than expected and beat all Street expectations. "Based on the results, we expect the stock to react positively up from today's closing price (Rs 1,877.6) and we are overall optimistic on the stock over a medium- to long-term horizon, with a technical target above Rs 2,000 for the coming 6-12 months," he said. 

  • How IT stocks have fared in past one year

    IT stocks have rewarded investors with phenomenal returns in the past one year. The Nifty IT has risen 43.1 percent during this period, beating the Nifty50's return of 25.1 percent. 

    Stock/index Return (%)
    TCS 21.6
    Infosys 36.9
    Wipro 51.1
    Nifty IT 43.1
    Nifty50 25.1
  • Infosys Q3 | Delivered another quarter of healthy margins despite supply side challenges: CFO Nilanjan Roy

    “Despite the cost escalations driven primarily by supply side challenges, we delivered another quarter of healthy margins, with improved cost optimisation, continued operating leverage and a stable pricing environment," said Nilanjan Roy, Chief Financial Officer, Infosys.

    “We continue to prioritize investments in talent acquisition and development and have further increased our global graduate hiring program to over 55,000 for FY22 to support our growth ambitions," he added.

  • Infosys Q3 | Expect healthy technology spend to continue, says CEO Salil Parekh

    "Our strong performance and market share gains are a testament to the enormous confidence our clients have in us to help them in their digital transformation. This stems from four years of sustained strategic focus on areas of relevance for our clients in digital and cloud, continued re-skilling of our people, and deep relationships of trust that our clients have with us. This is reflected in an upgrade in our revenue guidance," said Salil Parekh, CEO and MD, Infosys. 

    "We expect the healthy technology spend to continue with large enterprises progressing on their digital transformations... I am immensely proud of the relentless commitment of our employees during these challenging times and grateful for their extraordinary efforts in delivering success for our clients”, he added. 

  • Delivered strong Q3 performance in seasonally weak quarter: Infosys  

    Infosys said it delivered a strong Q3 performance in a seasonally weak quarter. Growth remained broad-based and deal momentum robust, with digital transformation rapidly scaling across verticals and
    regions, the company said in a statement. 

    Large deal wins accelerated with a total contract value of $2.53 billion in Q3, it said.

    TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates
  • Infosys Guidance | FY22 revenue growth seen at 19.5-20% 

    Infosys, India's second largest IT company, raised its revenue growth guidance for the current financial year to 19.5-20 percent from 16.5-17.5 percent. 

  • Infosys Q3 | Constant currency revenue growth at 7%, far ahead of Street estimates

    Infosys reported revenue growth of seven percent on a quarter-on-quarter basis in constant currency terms. Analysts in a CNBC-TV18 poll had expected the company's revenue growth at 3.7 percent.

  • Infosys Q3 | Dollar revenue up 6.3% vs Street expectation of 3.1%

    The company reported revenue of Rs 31,867 crore for the third quarter of FY22, as against Rs 29,602 crore for the three months to September 2021. 

    In dollar terms, Infosys posted revenue of $4,250 million for Q3 as against $3,998 million for Q2. 

    Analysts in a CNBC-TV18 poll had expected the company's dollar revenue to increase 3.1 percent sequentially to 4,122 million.

  • Infosys Q3 | Net profit at Rs 5,809 crore, exceeds Street estimates

    Infosys reported a net profit of Rs 5,809 crore for the quarter ended December. Analysts in a CNBC-TV18 poll had estimated the IT major's profit at Rs 5,701 crore. (Read more on Infosys Q3 results)

    For the quarter ended September 2021, Infosys had reported a net profit of Rs 5,421 crore. 

    Infosys posted earnings before interest and taxes (EBIT) of Rs 7,484 crore for Q3, up 7.3 percent sequentially. Its EBIT margin came in at 23.5 percent. 

    The analysts had estimated the company's quarterly EBIT at Rs 7,255 crore and the EBIT margin at 23.45 percent. 

    TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates
  • Wipro Q3 | CFO Jatin Dalal says company delivered robust margin after absorbing investments on salary increases

    Wipro CFO Jatin Dalal said the company delivered robust operating margins after absorbing substantial investments on salary increases, owing to continued improvement in operating metrics. "We also improved our working capital, by reducing our days sales outstanding. This has resulted in strong operating cash flow conversion, of 101.3 percent, of net income," he said. 

  • Wipro Q3 | Interim dividend of Re 1

    Wipro declared an interim dividend of Rs 1 per equity share.

  • Wipro Q3 | CEO Thierry Delaporte says 5th straight quarter of strong performance 

    Wipro CEO and Managing Director Thierry Delaporte said the company has delivered a fifth consecutive quarter of strong performance, both on the revenue and margin fronts. "Order bookings have been strong too, and we have added seven new customers in the more than $100 million revenue league, in the last 12 months. Our strategy and improved execution continue to serve us well, and we are confident of building on this momentum. We are also excited to have completed the acquisitions of Edgile and LeanSwift Solutions in the quarter, both of which will add to our capabilities significantly,” he said.  

  • Wipro Q3 | Constant currency revenue growth at 3%, misses Street expectations

    Wipro's revenue growth in constant currency terms came in at three percent for Q3, as against 8.1 percent for the previous quarter. Analysts had expected Wipro's revenue growth (constant currency) at 4-4.2 percent. 
     

     
  • Wipro Q3 | 12-month trailing attrition at 22.7%

    For the quarter ended September 2021, the IT major had reported attrition of 20.5 percent.

  • Wipro Q3 | Margin exceeds Street estimates by 20 basis points

    Wipro's revenue in both rupee and dollar terms fell short of analysts' expectations. 

    The company's margin, however, exceeded Street estimates. Wipro reported a margin of 17.6 percent for the quarter ended December. (Read more on Wipro Q3 results)

    TCS Results Highlights: Tata group IT major's Q3 profit at Rs 9,769 crore, misses Street estimates
Q3 Earnings Highlights
: India Inc kicked off the earnings season with a mixed bag of earnings from the country's three largest IT companies: TCS, Infosys and Wipro. TCS reported revenue of Rs 48,885 crore for Q3, Infosys Rs 31,867 crore and Wipro Rs 20,432.3 crore. Both TCS and Infosys met but Wipro fell short of Street estimates on the revenue front. Wipro misses analysts' expectations on most grounds, but managed meet their margin estimates.

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