- Broad based growth across the verticals, service lines and geographies.
- Revenue grew 3.9%/15.4% QoQ/YoY in CC (Constant currency) terms.
- Margin movement sequentially: EBITM declined 60bps QoQ on account of targeted salary
increments, backfilling costs & increased subcontracting costs (-70bps), higher discretionary
non-manpower costs like travel/facility/marketing (-60bps), partially offset by favorable
currency movement (+10bps) and operating efficiencies (+60bps).
- Revenue growth was broad-based, and all verticals posted double-digit CC growth YoY.
- Healthy deal intake (USD7.6bn TCV): Similar to 2QFY22, the distributions of deal wins had a wide spectrum, with no mega deals but a mixed bag of large, mid and small sized deals, driven by the digital transformation agenda. Total Contract Value (TCV) stood at US$7.6bn, which is up 12% YoY. It continues to witness strong momentum for cloud adoption, with customers embarking on multi-horizon cloud transformation journeys, thereby enabling its hyper-scaler business units to outperform consistently.
- Revenue growth momentum continued in the India business (11.1% QoQ) after a good Q2 quarter.
- Management said that they were seeing clear trends of enterprises investing confidently in technology initiatives for long-term growth.
- TCS continued to see robust demand as key themes, such as cloud modernization, connected enterprise & product innovation, customer experience and digital workplace transformation, gained traction.
- TCS has announced a buyback of shares worth Rs180bn at Rs4,500 per share, ~1.1% of equity. It has also announced an interim dividend of Rs7 per share.
- Subcontracting costs are likely to remain higher in the near term and will come down once attrition starts moderating.
- LTM Attrition: 15.3% in Q3 vs. 11.9% in Q2
- Employee: Added 28,238 employees in Q3, taking the total headcount to 556,986.
- Guidance: Double digit revenue growth in FY-22.