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TCS Q3 result: Profit up 1.5% QoQ at Rs 9,769 crore, misses Street estimates; revenue Rs 48,885 crore

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TCS said its total contract value for Q3FY22 stood at $7.6 billion as against  $6.8 billion in Q3FY21--an increase of 12 percent. TCS's year-to-date TCV stood at $23.3 billion, according to the earnings report.

TCS Q3 result: Profit up 1.5% QoQ at Rs 9,769 crore, misses Street estimates; revenue Rs 48,885 crore
IT services major Tata Consultancy Services (TCS) today released its quarterly earnings report for the latest quarter ended December 31, 2021. In the report, TCS reported earnings of Rs 9,769 crore. Its revenue stood at Rs 48,885 crore. In dollar terms, the company posted a revenue of $6,524 million for the October-December period, as against $6,333 million for the  previous quarter.
Its EBIT came in at Rs 12,237 crore, up 2 percent on a quarter-on-quarter basis. The EBIT margin was at 25 percent in the third quarter of FY22, as against 25.6 percent in the three months to September 2021.
In the report, TCS said the revenue saw a 16.3 percent year-on year growth; its CC revenue grew 4 percent quarter-on-quarter, and 15.4 percent YoY. The company said this was its strongest third-quarter growth in the past five years. It said it has seen a consistent performance with a delivery of 4 percent sequential CC growth.
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said, “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."

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Further, TCS stated in the earnings report that it has seen a double-digit growth--in percentage points--across all verticals. The company has posted a profit after tax (PAT) of Rs 9,763 crore, an increase of 12.2 percent YoY.
TCS said its total contract value for Q3FY22 stood at $7.6 billion as against  $6.8 billion in Q3FY21--an increase of 12 percent. TCS's year-to-date TCV stood at $23.3 billion, according to the earnings report.
“We continued our focus on growing organically and on developing the talent, methodologies, and toolkits for an ever-evolving technology landscape. This, coupled with our contextual knowledge and the passion and commitment of thousands of TCSers enabled us to deliver cutting-edge solutions during the quarter, and help our clients realize speed-to-value," said N Ganapathy Subramaniam, Chief Operating Officer & Executive Director.
Further, the company said the momentum for cloud adoption has continued unabated, with "customers embarking on multi-horizon cloud transformation journeys. The company is seeing clear evidence of outperformance by our hyper-scaler business units".


TCS said it witnessed a significant growth in client metrics in the latest quarter, which it said is representative of strong demand momentum and how customers have rewarded the company with more business across quarters. The IT services major said it added 10 new clients in the $100 million-plus bracket, taking the total number to 58. Further, it added 21 clients in the $50 million bracket taking the total to 118. Also, 98 new clients were added in the $1m-plus bracket, TCS said.
TCS stated in the report that it had an outstanding retail growth "despite seasonal headwinds due to furloughs". The retail growth was reported at 4.7 percent QoQ and 20.4 percent YoY.
BFSI contributed with a growth of 17.9 percent YoY, manufacturing with 18.3 percent YoY. Hi-Tech & TBU grew 17.7 percent, Life sciences & healthcare 16.3 percent and CMO 14.4 percent, all year-on-year, the report added.
The company reported that it saw the highest YoY growth in North America at 18 percent, while Continental Europe bounced back well both sequentially & annually with a 17.5 percent YoY. "India once again reported a double-digit growth in Q3 with 15.2 percent YoY & 13 percent QoQ, growth backed by strength of deal flow," the report stated, adding, that its UK growth stood at 12.7 percent YoY and Latin America at 21 percent YoY
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