Published On: Fri, Jan 17th, 2020

TCS Q3 net profit flat at Rs 8,118 crore

Mumbai: Global software major Tata Consultancy Services (TCS) on Friday reported a consolidated net profit of Rs 8,118 crore for the third quarter (October-December) of fiscal 2019-20, registering a mere 0.16 per cent annual growth from Rs 8,105 crore net profit clocked in the year ago quarter.

Among the geographies where TCS operates, Europe grew by 16 per cent year-on-year

In a regulatory filing on the BSE, the IT behemoth said consolidated revenue for the quarter (Q3) under review, however, grew 6.7 per cent to Rs 39,854 crore from Rs 37,338 crore in the same period a year ago.

On sequential basis, TCS net profit rose by 0.94 per cent to Rs 8,118 crore from Rs 8,042 crore recorded in Q2, 2019-20.

“We saw the sectoral trends of the first half of the year continue to play out in the third quarter,” said TCS chief executive and managing director Rajesh Gopinathan in a statement.

Under the category of revenue by industry practice, Banking Financial Services and Insurance (BFSI) continued to be the leader in Q3 with a revenue of Rs 15,483 crore, followed by Manufacturing Rs 4,171 crore, Retail and Consumer business Rs 6,709 crore, Communication, Media and Technology Rs 6,608 crore and Others Rs 6,883 crore.

In Q3, life sciences and healthcare vertical outperformed, registering 17 per cent growth year-on-year while manufacturing and Communications & Media grew by 9.2 per cent and 9.5 per cent respectively.

Among the geographies where TCS operates, Europe grew by 16 per cent year-on-year.

“Our participation in the growth and transformation spends of our customers is most evident in our sustained success in continental Europe where our revenues have more than doubled in the last five years,” said Gopinathan.

In other geographies in Q3, Middle East and Africa registered a growth of 10.8 per cent, UK 7.5 per cent, North America 4.1 per cent, Asia Pacific 5.7 per cent, India 6.4 per cent and Latin America 6.2 per cent.

In the quarter under review, Consulting and Services Integration saw strong growth, led by enterprise transformation services, mergers and acquisitions, divestiture and supply chain as a service.

Under digital transformation services, MFDM framework which integrates automation, analytics and AI played a key role in several transformation deals.

Enterprise intelligent automation, cyber security, IoT and enterprise application services led growth under digital transformation services, TCS said.

In Cognitive business operations, TCS witnessed strong growth in managed hybrid cloud services.

“TCS’ new operating models leveraging service reliability engineering, AIOps powered by ignio and Agile are seeing strong traction. Q3 order book was the strongest in the last several quarters,” said the company.

Among the multiple deals TCS won in Q3, projects came from Walgreen Boots Alliance, Petco, IAG Tech, Bayer, CSL Behring, Apriv PLC and several others.

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