Tata Consultancy Services, a leading global IT services, consulting and business solutions organization has reported a 7.18% rise in consolidated net profit for the quarter ended Dec. 31, 2020. The company has earned Rs. 87,010 million in the quarter, compared with Rs. 81,180 million for the same period last year.
Revenue during the quarter rose 5.42% to Rs. 4,20,150 million from Rs. 3,98,540 million in the previous year period.
Total expenses grew 3.18% to Rs 3,08,310 million in the quarter compared with Rs 2,98,800 million for the same period last year.
Tata Consultancy Services EPS has increased to Rs.23.19 in December 2020 from Rs. 21.63 in December 2019.
The company announced interim dividend of Rs 6 per share for which the record date is January 16 and payment date is February 3. The company said revenue from the banking and finance industries, its top revenue contributor, jumped 7.6% year-over-year to Rs 166,550 million in the December-quarter. This is the strongest December quarter growth in nine years, TCS said.
Tata Consultancy Services Netherlands BV, a wholly owned subsidiary of the Company, as a part of an overall arrangement, signed a definitive agreement on Jan. 1, 2021, to obtain entire equity stake in Postbank Systems AG (PBS), a subsidiary of Deutsche Bank AG, at an agreed consideration.
The Company incorporated a wholly owned subsidiary, Tata Consultancy Services Ireland in Ireland on Dec. 2, 2020.
"Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline," said Rajesh Gopinathan, CEO & MD, TCS.
He added, "Looking beyond the immediate business growth opportunity, we are tremendously excited by what lies ahead. Cloud is enabling a new class of boundaryless organizations, that can seamlessly partner and collaborate within larger ecosystems to create innovative purpose-driven offerings to customers. This boundaryless value creation, supported by the seamless fabric of technology enabled by cloud together the seamless fabric of talent enabled by our SBWS, will redefine industry after industry over the longer term. Our intimate knowledge of our customers' business contexts, our strong relationships across ecosystems, and our continued investments in research and innovation make us their preferred partner in their growth and transformation journeys."
"Our Q3 growth is a very satisfactory outcome of our ability to leverage the proactive investments made to capture the strong demand and be meaningful to our clients. It is a strong endorsement of our resilience, way of working and the relative competitiveness of our products and services. We celebrated the accomplishment of our Enterprise Agile by 2020 vision during the quarter, and with SBWS, we have a well-oiled location-independent execution model that brings in the resources just in time, efficient execution, and machine-led delivery governance that are delighting our customers. All these augur well to progress our 25x25 future of work vision," said N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, TCS.
He added, "We have had healthy deal closures and the growth has been broad based on a sequential basis, setting ourselves well for the future. We also welcome to the TCS fold, the professionals from Pramerica and Postbank Systems, accelerating our growth plans in Ireland, Germany and more broadly in Europe."
Shares of the company gained Rs 87.65, or 2.89%, to settle at Rs 3,120.35. The total volume of shares traded was 210,057 at the BSE (Friday).