TCS posts consolidated PAT of Rs. 8701 crores in Q3FY21

TATA CONSULTANCY SERVICES LTD. has reported financial results for the period ended December 31, 2020.

Financial Results (Q3 FY20-21) - QoQ Comparison

The company has reported total income of Rs.42706 crores during the period ended December 31, 2020 as compared to Rs.41049 crores during the period ended September 30, 2020.

The company has posted net profit / (loss) of Rs.8701 crores for the period ended December 31, 2020 as against net profit / (loss) of Rs.7475 crores for the period ended September 30, 2020.

The company has reported EPS of Rs.23.19 for the period ended December 31, 2020 as compared to Rs.19.93 for the period ended September 30, 2020.

Financials	Q3 FY20-21	Q2 FY20-21	% Change
Total Income	₹ 42706 crs	₹ 41049 crs	4.04%
Net Profit	₹ 8701 crs	₹ 7475 crs	16.4%
EPS	₹ 23.19	₹ 19.93	16.36%

Financial Results (Q3 FY20-21) - YoY Comparison

The company has reported total income of Rs.42706 crores during the period ended December 31, 2020 as compared to Rs.40672 crores during the period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.8701 crores for the period ended December 31, 2020 as against net profit / (loss) of Rs.8118 crores for the period ended December 31, 2019.

The company has reported EPS of Rs.23.19 for the period ended December 31, 2020 as compared to Rs.21.63 for the period ended December 31, 2019.

Financials	Q3 FY20-21	Q3 FY19-20	% Change
Total Income	₹ 42706 crs	₹ 40672 crs	5%
Net Profit	₹ 8701 crs	₹ 8118 crs	7.18%
EPS	₹ 23.19	₹ 21.63	7.21%

Financial Results (9 Months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.122675 crores during the 9 months period ended December 31, 2020 as compared to Rs.120857 crores during the 9 months period ended December 31, 2019.

The company has posted net profit / (loss) of Rs.23184 crores for the 9 months period ended December 31, 2020 as against net profit / (loss) of Rs.24291 crores for the 9 months period ended December 31, 2019.

The company has reported EPS of Rs.61.79 for the 9 months period ended December 31, 2020 as compared to Rs.64.74 for the 9 months period ended December 31, 2019.

Financials	9 Months ended FY20-21	9 Months ended FY19-20	% Change
Total Income	₹ 122675 crs	₹ 120857 crs	1.5%
Net Profit	₹ 23184 crs	₹ 24291 crs	-4.56%
EPS	₹ 61.79	₹64.74	-4.56%

Commenting on the Q3 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: "Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline."

He added: "Looking beyond the immediate business growth opportunity, we are tremendously excited by what lies ahead. Cloud is enabling a new class of boundaryless organizations, that can seamlessly partner and collaborate within larger ecosystems to create innovative purpose-driven offerings to customers. This boundaryless value creation, supported by the seamless fabric of technology enabled by cloud together the seamless fabric of talent enabled by our SBWS™, will redefine industry after industry over the longer term. Our intimate knowledge of our customers' business contexts, our strong relationships across ecosystems, and our continued investments in research and innovation make us their preferred partner in their growth and transformation journeys."

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: "Our Q3 growth is a very satisfactory outcome of our ability to leverage the proactive investments made to capture the strong demand and be meaningful to our clients. It is a strong endorsement of our resilience, way of working and the relative competitiveness of our products and services. We celebrated the accomplishment of our Enterprise Agile by 2020 vision during the quarter, and with SBWS™, we have a well-oiled location-independent execution model that brings in the resources just in time, efficient execution, and machine-led delivery governance that are delighting our customers. All these augur well to progress our 25x25 future of work vision."

He added: "We have had healthy deal closures and the growth has been broad based on a sequential basis, setting ourselves well for the future. We also welcome to the TCS fold, the professionals from Pramerica and Postbank Systems, accelerating our growth plans in Ireland, Germany and more broadly in Europe."

V Ramakrishnan, Chief Financial Officer, said: "Strong growth across all our verticals, and operational benefits from our SBWS model allowed us to post the highest operating margin in the last five years, even after rolling out a salary increase this quarter. We also had an a/I-time high cash conversion in Q3. This and our strong balance sheet position us very strongly to seize the opportunities that the current market offers, and more closely partner our customers in their growth and transformation journeys."

Shares of TATA CONSULTANCY SERVICES LTD. was last trading in BSE at Rs.3120.35 as compared to the previous close of Rs. 3032.7. The total number of shares traded during the day was 210057 in over 14084 trades.

The stock hit an intraday high of Rs. 3127.55 and intraday low of 3061.8. The net turnover during the day was Rs. 651218381.

Source : Equity Bulls

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