In the fiscal year 2022, its CEO Rajesh Gopinathan said on Friday, Tata Consultancy Services (TCS) NSE 2.90 percent will rise double-digit in the fiscal year 2022, as India’s largest IT services company sees a multi-year growth period for the software services industry helping global customers turn to digital and move their applications to the cloud.
We are very optimistic we should be able to return to our planned double-digit growth trajectory,” Gopinathan told reporters in the third quarter after beating street expectations.”
TCS said profit in the third quarter increased by 7.3 percent to Rs 8701 crore and revenue by 5.4 percent to Rs 42,015 crore on a year-on-year basis, the highest in nine quarters in a seasonally weak three month period, as it saw customers spend more on technology transformation across geographies and verticals,
On a year-on-year basis, TCS’ revenue rose 0.4 percent in constant currency terms. The business posted profits of $ 5.07 billion in dollar terms, up 4.1 percent from the previous quarter in constant currency terms.
The higher margin and sales growth beat expectations, analysts report. At 4.1 percent constant currency growth, TCS recorded very strong growth, we were building around 3.5 percent . It has improved 40 basis points, so it is a good beat on the topline as well as the margin. A number of company verticals have expanded really well, and the margin is at an all-time high as well. The lowest attrition is also seen as a positive development,’ said HDFC Securities’ IT analyst Apurva Prasad.
In the third quarter, TCS kicked off the results cycle among top IT firms. On January 13, smaller rivals Infosys and Wipro announced their earnings, followed on January 15 by HCL Technologies.