TCS Q3FY23 Result First Cut: All round Beat; Special Dividend Announced
In CC terms Revenue reported 13.5% YoY growth, better than our expectations. CC sequential growth not yet announced, but our calculation suggests CC sequential growth would be ~3%. This is much better than our and street expectations.
In USD terms Revenue grew by 3.3% QoQ and 9% YoY to USD 7.1 Bn against our expectations of 7% YoY and 1.5% QoQ growth.
INR terms Revenue grew by 19.1% YoY to INR 583 Bn against our expectations of 17% YoY growth.
TCS reported Operating margin of 24.5% in Q3FY23 which was 50 bps higher sequentially and inline with our estimates. EBIT grew by 16.7% YoY and 7.6% QoQ.
PAT grew by 11% YoY and 4% QoQ to 108 bn. This was lower our and street estimates.
The company reported orderbook of US$7.8bn which remained flat YoY but maintained a comfortable level. Book to Bill ratio came at 1.1x.
Vertical wise YoY performance- Growth was led by Retail and CPG (18.7%) and Life Sciences & Healthcare verticals (+14.4%). Communications & Media grew +13.5% and Technology & Services grew +13.6%. Manufacturing grew +12.5% while BFSI grew +11.1%.
Geography Wise YoY Performance: Among major markets, North America and UK led with +15.4% growth; Continental Europe grew +9.7%. In emerging markets, Latin America grew +14.6%, India grew +9.1%, Asia Pacific grew +9.5% and Middle East & Africa grew +8.6%.
Attrition came at 21.3%, flat sequentially. Net hiring came negative ~2,200 people which push the utilisation higher in this quarter.
Total Company announced Dividend of INR 75 per share including INR 67 as special dividend Record date 17/01/2023 | Payment date 03/02/2023.
Commentary of CEO: ““We are pleased with our strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and UK. The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves, while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust.”
ConCall Details:
Time: 09th January 07:00 p.m.
Primary Access: +91 22 6280 1108
Secondary Access: +91 22 7115 8009
By: via Allies Fin Serve Stock Market
