WEB Sustained Cloud Demand and Operational Excellence Marks TCS Q3
11 January 2024, 05:41:30 PM IST
TCS Q3 Earnings and Margins Beat Street Estimates
Tata Consultancy Services (TCS), India's largest software service provider, reported strong financial results for the third quarter (Q3) of fiscal year 2024. The company's consolidated net profit rose 2% year-over-year (YoY) to ₹11,556 crores.
TCS's quarterly revenue jumped 15% sequentially to ₹58,229 crores, driven by sustained cloud demand, operational excellence, and a strong order pipeline. The company's constant currency revenue growth stood at 13.5%, exceeding analyst estimates.
Operating margins for Q3 expanded by 100 basis points to 25%, indicating the company's focus on cost optimization and efficiency gains. TCS's earnings per share (EPS) for the quarter rose to ₹16.92, beating market expectations.
In a statement, TCS CEO and Managing Director Rajesh Gopinathan attributed the company's performance to "our continued investments in digital technologies and transformation partnerships with our customers." He highlighted the growth in key verticals, such as banking, financial services, and insurance (BFSI), and the traction gained in cloud, data analytics, and artificial intelligence (AI).
Analysts praised TCS's robust Q3 results, with many expecting the company to maintain its growth momentum in the coming quarters. The company's positive outlook, coupled with its strong execution capabilities, is likely to drive long-term shareholder value.
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