Top IT service major Tata Consultancy Services (TCS) on Wednesday reported 12 per cent (YoY) increase in consolidated net profit for the quarter ending 31 December, 2021 at Rs 9,769 crore, boosted by a demand for digital services such as cloud.
The company had reported a net profit of Rs 8,701 crore in the year-ago period.
Revenue
The company’s revenue rose 16.3 per cent YoY to Rs 48,885 crore from Rs 42,015 crore in the corresponding period last fiscal, and 15.4 per cent in constant currency (CC) terms.
It also stated that it has hit the $25 billion revenue mark in CY 2021 in dollar terms.
The IT giant’s net income came at Rs 9,769 crore, up 12.3 per cent YoY, while net margin was at 20%.
Share Buyback
The company’s board also approved buyback of shares at valued at Rs 18,000 crore being 1.08 per cent of the total paid up equity share capital at 4,500 per equity share.
What is Share Buyback?
Share buybacks refer to the repurchasing of shares of stock by the company that issued them.
A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.
Dividend
TCS board also approved third interim dividend of Rs 7 per share for FY22. The record date is 20 January and payment is 7 February.
Employee Tenure
In case of employee headcount, TCS added 28,238 employees in the said quarter, increasing the workforce strength to 556,986.
It also added that the company has crossed 200,000-mark in women in the workforce with over 68 per cent growth at senior Levels during 2016-21.
Its IT services attrition rate (LTM) in the third quarter stood at 15.3 per cent.
Comment from CEO
Rajesh Gopinathan, “Our continued growth momentum is a validation of our collaborative, inside-out approach to our customers’ business transformation needs.
Customers love our engagement model, our end-to-end capability, and our can-do approach to problem solving.
While mapping out their innovation and growth journeys, we are also helping them execute new-age operating model transformations to support those journeys.”
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