TCS Q3 beat estimates: Best Q3 growth in 9 years; Operating margins expand to highest in last 5 year

TCS reported a beat on almost all counts in Q3 FY21 (October-December quarter). This was the strongest Q3 growth in 9 years, despite Q3 being a seasonally weak quarter. The IT major revenue growth came back to positive territory thus posting revenue growth of +0.4% YoY in constant currency (CC) terms and revenue growth of 4.1% QOQ CC terms. Growth was broad-based across all segments and geographies. EBIT margin (operating margin) came in at 26.6% which is the highest in the last 5 yrs even after rolling out salary hikes. EBIT margin expanded 40bps on a QOQ basis (sequential basis). Total Contract Value (TCV) of deal wins $6.8 Bn vs $8.6 bn QOQ (vs $6 bn YoY),
 
Rajesh Gopinathan, CEO and MD said at the press conference, confident of achieving double-digit growth going ahead. He said TCV of USD 6.8 bn does not include a large deal of the Postbank system in Germany. Both BFSI vertical and N America have all-time high TCV.  BFSI, Technology & services moved to positive territory on yoy growth CC terms. The attrition rate at an all-time low and the cash conversion rate at an all-time high.
 
Gopinathan said, " We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline."
 
Let’s listen in to Poonam Saney to catch more on blockbuster TCS Q3 earnings


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