Profits beat street estimates
India's largest software services firm Tata Consultancy Services on Friday reported 7.2 percent year-on-year (YoY) rise in consolidated net profit to Rs 8,701 crore for the December quarter.
This can also be mentioned as TCS Q3 - FY 21 meaning TCS Q3 (Quarter 3 i.e. Sep to Dec 2020 quarter) for FY 21 (Financial Year 2020-21).
The company's revenue came in at Rs 42,015 crore, up 5.42 per cent YoY and 4.68 per cent QoQ. TCS' revenue stood at Rs 39,854 crore in the corresponding quarter last year and Rs 40,135 crore in the preceding quarter of FY21.The revenue rose by 4.1 per cent QoQ and 0.4 per cent YoY in constant currency terms. In dollar terms, revenue grew at 5.1 per cent sequentially from $ 5.424 billion reported in Q2FY21. The firm said it was the strongest third quarter growth in 9 years.
Declares Interim Dividend
Further, TCS announced third interm dividend of Rs 6 per share.
The Tata Group firm said it has fixed January 16 as the record date to determine the eligible shareholders.Commenting on the Q3 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director of the company said: "Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline."
The Tata Group firm said it has fixed January 16 as the record date to determine the eligible shareholders.Commenting on the Q3 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director of the company said: "Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline."
Increasing IT spends helps revival in the Indian IT Industry
In a new report titled 'Spotlight: Indian IT Services Sector', Fitch said the impact of the coronavirus pandemic is seen to be only moderate and short term, as customers focus on transforming their businesses digitally, moving services and work platforms online, and minimise spending on legacy services.
Pandemic will accelerate digital IT spends, it said. Most companies have reported robust deal wins that should support growth in 2021-2022, despite the revenue decline in the second quarter of 2020, said the report.
"The industry will continue to remain export-driven as it mainly serves US and Europe-based clients. We forecast the industry's revenue to rise by a high single-digit percentage during 2021-2022, after a relatively flat year in 2020," said Fitch report.
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