TCS third quarter net profit beats the Street at Rs 3,552 cr
Beating street expectations, TCS reported a net profit of Rs 3,552 crore during October-December as per IFRS accounting standards, which was up 1.1% sequentially. Revenues during the period were up 2.9% quarter-on-quarter at R16,070 crore. The company’s operating income came in at a robust R4,381 crore, up 4.8% over the September quarter.
Though unlike Infosys, TCS does not provide a guidance, it did say that it would outperform the industry by beating the projections of 11-14% growth by industry association Nasscom.
“We had good revenue growth, balanced across service lines, industries and geographies; our agile, customer-centric organisation is delivering an increasing number of larger and deeper client relationships,” chief executive officer and managing director N Chandrasekaran said.
In dollar terms, TCS reported revenues of $2,948 million for the December quarter, up 3.3% sequentially. Infosys had surprised analysts on Friday by raising its revenue guidance for the current fiscal to $7.45 billion from $7.34 billion earlier.
Infosys stock had closed 17% higher on the BSE on Friday. However, analysts do not expect shares of TCS to surge like Infosys because “the results expectation for Infosys was very low.”
North America, UK and Latin America led the growth for the company in actual terms whereas continental Europe was down 2.4%. North America,
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