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A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
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Revenue
₹60,583 Cr
verified against source
Revenue YoY
4%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
TCS reported Q3 FY24 revenue of INR 63,583 crore, up 4% YoY, with operating margin expanding 70 bps sequentially to 25%. Net profit stood at INR 11,735 crore, with net margin at 19.4%. Growth was driven by cloud and cybersecurity, with strong performance in India (+23.4% YoY) and UK (+8.1% YoY), while North America declined 3% due to macro uncertainties. Deal wins totaled $8.1 billion, broad-based without mega deals. Management noted no change in discretionary spending, with clients prioritizing cost optimization. GenAI is moving from POC to production with four deployments, but revenue impact remains small. Attrition improved to 13.3%. Guidance remains cautious; no specific revenue or margin targets given. Risk: prolonged weakness in North America and BFSI could delay recovery.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects BFSI to bottom out and grow from the coming quarter, driven by deal wins and seasonal bounce-back.
- BSNL deal will contribute over the next 4-6 quarters, with momentum picking up quarter on quarter.
- CFO stated that levers like productivity, utilization, and subcontractor costs offer further scope for improvement, though no specific target given.
- CHRO reaffirmed the plan to onboard 40,000 freshers in FY24, with hiring progressing as per schedule.
Risks flagged
- North America revenue declined 3% YoY and BFSI degrew 3% YoY. Management could not provide a timeline for recovery, citing macro uncertainties.
- Analyst noted that despite strong deal wins, revenue growth has been muted, partly due to reprioritization of older programs. Management confirmed this trend.
- GenAI is still in early stages with only four production deployments. Management could not provide a timeline for meaningful revenue contribution.
- Headcount declined by 5,600 in Q3. CHRO said further decline would not be surprising, which could signal lower utilization or demand.
Key quotes
- Our revenues grew by 1.7% year-on-year and 1% quarter-on-quarter on a constant currency basis. Our rupee revenue grew by 4% to reach INR 63,583 crore.
- Our continued focus on operational excellence helped us achieve an operating margin of 25%, which represents a sequential margin expansion of 75 basis points.
- I think still we are not in a position to call whether this macro... From our perspective, situations has not, that hasn't changed much.
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