IT major TCS' consolidated net profit rose 2.9% to Rs 6778 crore on 1.5% increase in revenue to Rs 29735 crore in Q3 December 2016 over Q2 September 2016. The company's consolidated revenue in constant currency grew 2% in Q3 December 2016 over Q2 September 2016. The result was announced after market hours yesterday, 12 January 2017. The results are as per International Financial Reporting Standards (IFRS).
In the quarter ended 31 December 2016, total employees count stood at 378,497. The company reported gross addition of 18,362 employees. Attrition declined further to 11.3% (LTM) in IT services in Q3 December 2016 over Q2 September 2016.
During Q3, growth was led by energy & utilities (up 5.8% sequentially), Hi-Tech (up 2.6% sequentially), BFSI (up 2.1% sequentially), Manufacturing (up 2.1% sequentially) and Retail (up 1.9% sequentially) in constant currency.
From a geography perspective, emerging markets like Latin America and India clocked double digit growth of 12.5% and 10.3% sequentially respectively while North America grew 2.2% sequentially and UK grew 1.7% sequentially.
From a services perspective, strength in growing segments like Platforms, Cloud and Internet of Things is evident from the growth in Asset Leveraged Solutions (up 21% sequentially), Infrastructure services (up 9.5% sequentially) and Engineering and Industrial Services (up 3.1% sequentially).
Commenting on the Q3 performance, CEO and MD, N Chandrasekaran said that the resilience of the company's business model and strength of its operating strategy has been brought to the fore by its performance in Q3, traditionally a quarter of weak demand. TCS' strengths in digital, platforms and cloud as well as its deep knowledge of the customers' domain are driving its ability to play a strategic role and make a holistic impact on the business.
More From This Section
Chandrasekaran added that to support and sustain the company's digital business that is growing at 30% on an annual basis, it continues to build new capabilities in digital technologies, empower employees to enhance agility in the workplace and invest more to develop IP-based platforms and products. Some of these products and platforms are maturing with greater customer adoption while others continue to be incubated in our In novation labs. As digital adoption increases in 2017, TCS is well prepared to lead this change.
Rajesh Gopinathan, Chief Financial Officer, said that TCS has shown great discipline and control at all levels to deliver another credible quarter. Alongside a good growth performance, the company has been able to keep profitability stable in the desired range and deliver over $1 billion in free cash flow during the quarter.
Meanwhile, TCS after market hours yesterday, 12 January 2017 announced that Rajesh Gopinathan has been appointed as Chief Executive Officer (CEO) and Managing Director of the company.
Shares of Tata Group companies including TCS, Tata Metaliks, Tata Steel, Tata Communications, Tata Global Beverages, Tata Chemicals, Tata Motors, Tata Investment Corporation, Tata Power, Tinplate Company of India, Rallis India, Tata Sponge Iron, Tata Teleservices (Maharashtra) and Tata Coffee will be in focus after Natarajan Chandrasekaran was appointed as the new chairman of Tata Sons from 21 February 2017. Earlier Tata Sons, the holding company of the Tata Group, had in October 2016 replaced Cyrus P. Mistry as chairman of Tata Sons.
Infosys will announce its Q3 December 2016 results today, 13 January 2017.
JSW Energy said that its board meeting has been rescheduled to 23 January 2017. The board will consider raising of long term funds through the issuance of non-convertible debentures by way of a private placement. The board will also consider the company's earnings for the quarter and nine months ended 31 December 2016. The announcement was made after market hours yesterday, 12 January 2017.
Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, signed an memorandum of understanding (MoU) with the Government of Gujarat, through a 100% subsidiary, to establish a 350-acre (approximately), multi-product industrial park near Ahmedabad. The proposed new industrial park marks Mahindra Lifespaces' foray into Gujarat and is being planned to cater to non-polluting industries. The industrial park is expected to create direct and indirect employment for about 12,000 persons, when fully operational. The proposed multi-product industrial park will be developed under the aegis of Gujarat industrial Policy 2015. The announcement was made after market hours yesterday, 12 January 2017.
Bharti Airtel will be watched. Airtel Payments Bank, India's first payments bank, commenced national operations yesterday, 12 January 2017, with services now LIVE in all 29 States of India. Arun Jaitley, Union Minster of Finance and Corporate Affairs, formally launched Airtel Payments Bank's national operations yesterday, 12 January 2017. The announcement was made after market hours yesterday, 12 January 2017.
Airtel Payments Bank, a fully digital and paperless bank, aims to take basic banking services to the doorstep of every Indian by leveraging Airtel's vast retail network. Over 250,000 neighbourhood Airtel retail stores across the country will also function as banking points, and customers will be able to open savings accounts, deposit and withdraw cash across any of these banking points. Airtel Payments Bank will not charge any processing fee from its customers and merchants partners for digital transactions, thereby encouraging them to adopt cashless payments.
Bharat Financial Inclusion said that the company on 12 January 2017 assigned a pool of receivables of an aggregate value of Rs 313.78 crore to one of the largest public sector banks on direct assignment basis as per the guidelines prescribed by the Reserve Bank of India. This is the second direct assignment transaction during FY17. This may be one of the largest assignment transactions in the microfinance industry post demonetization. The announcement was made after market hours yesterday, 12 January 2017.
Mastek said that the closing formalities in relation to the share purchase agreement for acquisition of 100% equity shares of Trans American Information Systems have been completed and consequently, Trans American Information Systems has become a wholly owned subsidiary of the company. The announcement was made before market hours today, 13 January 2017.
Further the company informed that Digility Inc., U.S., an overseas first level step down subsidiary of the company, has completed the acquisition of TaisTech LLC, USA and Trans American Information Systems Inc. USA. Pursuant to the acquisition, TaisTech LLC, USA and Trans American Information Systems Inc. USA have become wholly owned subsidiaries of Digility Inc., U.S. and consequently, they have also become step down wholly owned overseas subsidiaries of the company.
Powered by Capital Market - Live News