Tata Consultancy Services, the country's largest IT services provider, beating the street estimate. its third quarter (October-December) profit increased 2.9 percent sequentially to Rs 6,778 crore, driven by the strong digital business and great execution work. It touched USD 1 billion-mark in profit for the first time.
Sequentially TCS registered consolidated sales growth of 2% to Rs 29735 crore for the quarter ended December 2016. OPM was stable at 27.7% which saw OP rise 1% to Rs 8229 crore. Other income grew 13% to Rs 1192 crore and interest cost grew 40% to Rs 7 crore. After providing for depreciation (Rs 496 crore), PBT grew 3% to Rs 8918 crore.
Provision for taxation grew 2% to Rs 2104 crore after which PAT grew 3% to Rs 6814 crore. Minority interest grew from Rs 17 crore to Rs 36 crore, Finally, sequential net profit grew 3% to Rs 6778 crore.
During Q3, growth was led by Energy & Utilities (up 5.8% sequentially), Hi-Tech (up 2.6% sequentially), BFSI (up 2.1% sequentially), Manufacturing (up 2.1% sequentially) and Retail (up 1.9% sequentially) in constant currency.
From a geography perspective, emerging markets like Latin America and India clocked double digit growth of 12.5% and 10.3% sequentially respectively while North America grew 2.2% sequentially and UK grew 1.7% sequentially.
From a services perspective, strength in growing segments like Platforms, Cloud and Internet of Things is evident from the growth in Asset Leveraged Solutions (up 21% sequentially), Infrastructure services (up 9.5% sequentially) and Engineering and Industrial Services (up 3.1% sequentially).
y-o-y consolidated quarter results
On y-o-y basis TCS registered a 9% jump in consolidated sales. OPM fell from 28.3% to 27.7%which limited OP growth to 6%. PBT grew 12%. PAT was up 11%. After minority interest, net profit grew 11%.
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