TCS Q3 profit grows 10.9% to Rs 6,778 crore

MUMBAI: India’s biggest software services firm TCS today reported 10.9% jump in profit to Rs 6,778 crore for the third quarter of the current fiscal.

It had reported net profit of Rs 6,110 crore in the October-December period of last fiscal. The operating profit was at Rs 7,733 crore in the reported quarter.

Revenue of Tata Consultancy Services was up 8.7% at Rs 29,735 crore in the third quarter of 2016-17, from Rs 27,364 crore in the year-ago period.

On quarter-on-quarter basis, net profit was up 2.9%, while revenue grew 1.5% in the said quarter.

“The resilience of our business model and strength of our operating strategy has been brought to the fore by our performance in Q3, traditionally a quarter of weak demand,” TCS MD and chief executive N Chandrasekaran said

“Our strengths in Digital, Platforms and Cloud as well as our deep knowledge of the customers’ domain are driving our ability to play a strategic role and make a holistic impact on the business,” he said.

To support and sustain the company’s digital business that is growing at 30% on an annual basis, TCS continues to build new capabilities in digital technologies, empower employees to enhance agility in the workplace and invest more to develop IP-based platforms and products, he added.

“Alongside a good growth performance, we have been able to keep profitability stable in our desired range and deliver over $1 billion in free cash flow during the quarter,” TCS chief financial officer Rajesh Gopinathan said.

The company declared a dividend of Rs 6.5 per share and its earnings per share (EPS) stood at Rs 34.40.