The IT giant, Tata Consultancy Services (TCS) has released the Quarter 3 (Q3) Financial results with better than expected profit and revenue number. Yes, the number has drastically increased from the Q3 results 2019 and also from Q2 results 2020. Let us see how and what made this happen.
Tremendous increase in numbers
The profit level has increased by 7.18 per cent YoY also the Revenue has increased by 5.42 percent compared to 2019’s Quarter 3.
Profit: 7.18 percent increase
2019’s Q3 value: ₹ 8118 crore
2020’s Q3 value: ₹ 8701 crore
Revenue: 5.42 percent increase
2019’s Q3 value: ₹ 39,854 crore
2020’s Q3 value: ₹ 42,015 crore
Operating Margin which is the profit of the company made on a dollar of sales after paying for variable costs but before paying any interest or taxes, has also increased.
2019’s Q3 value: 25 percent
2020’s Q3 value: 26.6 percent
Shareholders are now happy with the announcement that dividend is at the rate of ₹ 6 per share. Dividend is a reward, cash, payment, stocks or otherwise, that a company gives to its shareholders.
What do the CEO and CFO say
The Chief Executive Officer and Managing Director of Tata Consultancy Service, Rajesh Gopinathan says “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”
Also, The Chief Financial Officer V Ramakrishnan said that “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 all-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”
Reason behind the success
Dependency on digital service has brought in loads of new clients into Tata Consultancy’s market. Also the expenses saved as a result of employees working from home has contributed to such a resounding success. These have helped the TCS Q3 results to be much better than anticipated. Yes, pandemic has given better results for everyone who puts in persistent hard work and effort.