In a seasonally weak quarter, analysts predicted that the Tata-group company’s revenue would increase by 2.9% quarter-over-quarter (QoQ), while net income would increase by 7.8% QoQ.

Tata Consultancy Services (TCS) reported on January 9 that its consolidated net profit for the quarter ending December 2022 increased by 10.98% to Rs 10,883 crore (Q3FY23). In the prior year, the company posted a profit of Rs 9,806 crore.

The consolidated revenue from operations increased 19.11 percent to Rs 58,229 crore from Rs 48,885 crore in the same quarter of the previous fiscal year.

The revenue exceeded expectations, but the profits fell short.

In constant currency terms, the company’s revenue increased by 13.5% year-over-year (YoY), led by North America and the United Kingdom, whose revenue increased by 15.4% YoY. The operating margin was 24.5 percent, a decrease of 0.5 percent year-over-year. The net margin was 18.6 percent. In a seasonally weak quarter, analysts predicted that the Tata-group company’s revenue would increase by 2.9% quarter-over-quarter (QoQ), while net income would increase by 7.8% QoQ.

The company also declared a total dividend per share of Rs 75, including a special dividend of Rs 67. The dividend record date will be January 17, and the dividend payment date will be February 3, 2022.

“We are pleased with our robust growth in a seasonally weak quarter, which was driven by cloud services, market share gains from vendor consolidation, and continued momentum in North America and the United Kingdom.” “Rajesh Gopinathan, CEO and Managing Director of TCS, stated as much. “The sustained strength of demand for our services is evidence of the value we deliver to our clients by assisting them in differentiating themselves and increasing their competitiveness. Beyond current uncertainties, our outlook for longer-term growth remains positive.”

According to the company, TCS’s net headcount decreased by 2,197. In the previous twelve months, IT Services had a turnover rate of 21,3 percent.

“Improved productivity, currency support, and diminishing supply side challenges contributed to the expansion of our operating margin in the third quarter.” “said TCS Chief Financial Officer Samir Seksaria. “This gives us greater confidence in our ability to steer our profitability toward our preferred range while continuing to invest in the development of new capabilities to support our growth and market share gains.”