India’s largest IT company Tata Consultancy Services (TCS) has announced its results for the third quarter (Q3) of the financial year 2024. Despite some difficulties in the world market, the company has performed well.
The Tata Consultancy Services (TCS) has once again shown why it is considered to be the best player in IT services and advisory places worldwide. The TCS is present in 50+ countries around the world today and is a wide portfolio of customers in industries that speak high of TCS excellence in innovation, distribution and customer satisfaction.Let’s understand the key details in simple language.
Revenue and profit
TCS reported revenue of ₹59,692 crore for Q3, an increase of 3.7% over the same quarter last year. But this time the growth was slightly less than every quarter.
The company’s net profit in the third quarter was ₹11,146 crore, which is 11% more than the same period last year.
Operating margin
Company’s operating margin was 24.3%. This is slightly higher than the 24% of the previous quarter. This shows that the company has worked hard to reduce expenses and improve its operations.
Deal wins
One of the biggest achievements of the third quarter was securing new deals across multiple sectors such as banking, finance, healthcare, and telecom. The deal value was $11.2 billion.
The biggest win was a ₹15,000 crore deal with BSNL to roll out 4G and 5G networks in India. The deal reflects the company’s growing focus on the telecom sector.
Challenges
The company faced some challenges due to holidays in the US and Europe, which reduced client spend in some geographies.
Due to global economic uncertainties, some clients, especially those in the finance and retail sectors, are deferring new hiring decisions.
Workforce Update
TCS had a total employee headcount of 608,985, a slight decline as compared to the previous quarter. This decline was due to lower hiring and employee resignations.
The attrition rate, which indicates the percentage of employees leaving the company, fell to 14.9%. This decline was due to lower hiring and employee resignations.
Outlook for the future
CEO K. Krithivasan said TCS is well positioned to grow steadily over the next few months, helped by strong orders and cost-cutting measures.
TCS is very optimistic about the future, focusing on building long-term customer relationships
and investing in new technologies such as AI, cloud and cybersecurity.
Market reaction
TCS share price witnessed a marginal decline in early trade after the results announcement but it stabilised later.
Analysts believe that despite the stable results, investors were expecting higher growth.
Final Thoughts
The company has positioned itself well for future growth, this is possible due to strong deal wins and a focus on new technologies. While cost-cutting and low demand around the world are a challenge, TCS’ US business plans and its leadership in the IT sector remain strong.
For investors and stakeholders, TCS is a trusted company in the IT sector. It consistently performs well and adapts itself to the changing market.
