India's largest IT services company, Tata Consultancy Services (TCS), reported a net profit of Rs 11,058 crore in the quarter ended December 31, 2023, marking a 2 percent YoY increase from Rs 10,846 crore in the corresponding quarter of the previous fiscal year.
Consolidated revenue rose 4 percent YoY, reaching Rs 60,583 crore in the three months to December 31, according to an exchange filing by the company.
“Our strong performance in a seasonally weak quarter buffeted by macro-economic headwinds demonstrates the strength of our business model with a well-diversified portfolio and a customer-centric strategy. We are seeing strong momentum across markets, resulting in a solid order book and providing visibility into our long-term growth. We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area," said K Krithivasan, Chief Executive Officer and Managing Director of TCS.
The company said that the growth in the third quarter was driven by the energy, resources, and utilities vertical, which rose 11.8 percent. Manufacturing also contributed significantly, with a growth of 7 per cent, and life sciences and healthcare showed a growth of 3.1 percent.
Certain sectors of the company faced declines during the quarter. The consumer business group (CBG) declined by 0.3 per cent, while the banking, financial services, and insurance (BFSI) sector fell by 3 per cent. The communications and media sector and the technology and services sector were 4.9 per cent and 5 per cent lower, respectively, during the quarter.
In addition to the financial results, the TCS board approved a dividend of Rs 27 per share, including a special dividend of Rs 18 for the financial year 2023-2024.
"We would like to inform you that at the board meeting held today, the directors have declared a third interim dividend of Rs 9 and a special dividend of Rs 18 per equity Share of Rs 1 each of the Company," the company said in an exchange filing.
