Published on 17/01/2020 5:13:14 PM | Source: Live Mint

TCS Q3 net rises marginally to ₹8,118 crore, misses estimates

Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel 

Download Telegram App before Joining the Channel

Mumbai : Software behemoth Tata Consultancy Services’ (TCS) reported net profit of ₹8,118 crore, which rose by 0.16% in the third quarter ending on 31 December. On a sequential basis, profit rose 0.95% as compared to ₹8,042 crore reported in Q2. Street estimates pegged net profit to grow around 2% sequentially.

Constant currency revenue grew 6.8% on a year on year basis. Revenue grew 2.25% sequentially and 6.74% year on year to ₹39,854 crore.

Analysts on average had expected TCS to report a profit of ₹8,190 crore, according to Bloomberg estimates. In Q2, TCS posted a revenue of ₹38,977 crore and a profit of ₹8,042 crore. The company had reported single-digit revenue growth in the, after four successive quarters of double digit growth, mainly on account of volatility in the financial services sector, missing analyst estimates.

The management had already guided for weaker growth in banking, financial services and retail verticals for Q3 after they failed to pick up in the seasonally strong Q2 weighing down revenue growth.

"We saw the sectoral trends of the first half of the year continue to play out in the third quarter. Our robust order book during the quarter reflects our ability to pitch innovative technology solutions to address the business needs of different stakeholders in the enterprise, and participate in our customers' enterprise-wide transformation initiatives. This is also helping deepen and broaden our customer relationships, and make the business more resilient," said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS.

TCS had signed deals worth $12.1 billion in H1. BFSI revenue was reported at 39% of total revenue. The company also announced interim dividend of ₹5, record date of which has been fixed on 25 January while the payment date is 31 January. During the quarter, segments such as life sciences and healthcare grew 17.1% on a yearly basis. Manufacturing grew 9.2% while communications and media at 9.5%.

Shares of TCS lost 0.91% to close at ₹2,218.05 on Friday on the BSE, while the benchmark index, Sensex gained 0.03% to close at 41,945.37 points.