TCS Q3 Results: Net Profit Up 2% YoY to Rs 11058 cr, Revenue Up 4%

IT giant Tata Consultancy Services (TCS) defied muted expectations to deliver 2% year-on-year (YoY) growth in net profit for Q3 FY24, reaching Rs 11,058 crore. The company's revenue also impressed with a 4% YoY surge to Rs 60,583 crore, exceeding analyst estimates.

Key Takeaways:

• Profit: Rs 11,058 crore (up 2% YoY), exceeding analyst expectations.
• Revenue: Rs 60,583 crore (up 4% YoY), surpassing analyst estimates.
• Dividend: Board recommends Rs 18 special dividend and Rs 9 interim dividend per share.
• QoQ Performance: Revenue up 1.5%, net profit down 2.5% (due to Rs 958 crore legal settlement charge).

This positive report comes despite concerns about economic slowdown and its impact on the IT sector. TCS's performance suggests resilience and adaptability, and analysts believe the company is well-positioned for future growth.

Additionally:

• TCS board recommended a generous dividend payout, reflecting confidence in the company's financial health.
• The slight QoQ dip in net profit can be attributed to the one-time legal settlement charge, and does not indicate a broader decline in profitability.

Overall, TCS's Q3 results paint a picture of a company navigating challenging market conditions with success. The strong financial performance and optimistic outlook are likely to be well-received by investors and further solidify TCS's position as a leader in the IT services industry.