TCS kicks off Q3 earnings with better than expected show, announces special dividend

• Net profit on an adjusted basis stood at ₹12,016 crore, an uptick of 6% QoQ.
• The dividend will be paid to shareholders on February 5.
• Total workforce strength fell for the second consecutive quarter.

IT bellwether, TCS, has kicked off the Q3FY24 earnings season on Thursday reporting revenue of ₹60,583 crore, up 1.5% quarter-on-quarter. The revenue in US Dollar terms stood at $7,281 million in this period. The company's net profit on an adjusted basis stood at ₹12,016 crore, an uptick of 6% in the same period.

The company also declared an interim dividend of ₹9 and a special dividend of ₹18 per share, which totals the dividend payout to ₹27 per share. The dividend will be paid to shareholders on February 5, 2024.

The company has reported EBIT or Earnings Before Interest and Tax of ₹15,155 crore during the quarter, which was 4.6% higher sequentially.

Deal wins during the quarter stood at $8.1 billion, the company said. The Tata Group giant had won deals worth $11.2 billion during the quarter.

Attrition

TCS saw its total workforce strength reduce for the second consecutive quarter. The attrition level has come down to 13.3%.

headcount dropped by 5,680 employees to 603,305 at the end of the third quarter of the financial year 2023-24. This compares to a decline of 6,333 employees in the preceding quarter. In the same quarter last year, the firm had witnessed a decline of nearly 2,200 employees.

“The employee base is very diverse, with 35.7% women and with 153 nationalities. Year till date, TCSers have clocked 39.7 million learning hours, and acquired 3.7 million competencies including 515,000 high demand competences,” the company’ statement reads.

Milind Lakkad, Chief HR Officer, has said that TCS is committed to hiring from college campuses and growing talent organically.

On Thursday, shares of TCS settled 0.37% higher at ₹3,726.70 on the NSE. The sock is down over a percentage point so far this year and has risen close to 12% in the past year.