TCS Q3 Results: Misses Guidance, Reports $81 Billion in Deal Wins
Mumbai, India - January 11, 2023 - Tata Consultancy Services (TCS) today reported its financial results for the third quarter of fiscal year 2024 (Q3 FY24), missing analysts' guidance but securing $81 billion in new deal wins.
TCS reported a consolidated net profit of ₹10,431 crores (US$1.3 billion) for the quarter ended December 31, 2023, a 2% year-over-year (YoY) increase. The company's revenue rose by 19% YoY to ₹58,229 crores (US$7.2 billion), driven by strong demand for cloud and digital transformation services.
However, TCS missed market expectations as analysts had forecast a net profit of ₹10,700 crores (US$1.33 billion) and revenue of ₹58,500 crores (US$7.25 billion) for Q3 FY24.
Despite the earnings miss, TCS CEO Rajesh Gopinathan expressed optimism about the company's future. "We have seen strong demand across all our key markets and industry verticals," he said. "Our deal wins demonstrate the trust our clients have in our ability to help them navigate their digital transformation journeys."
TCS has been aggressively pursuing deals in the cloud, data analytics, and artificial intelligence (AI) space, which are key growth areas for the company. In Q3 FY24, it secured several large deals with global clients in these areas, contributing to the $81 billion in total deal wins.
Shares of TCS were slightly higher in early trading on the Bombay Stock Exchange (BSE) ahead of the company's Q3 earnings announcement. Investors are now eagerly awaiting TCS's Q2 FY24 results, which are scheduled to be released on April 13, 2023.
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