On a reported basis, revenue was up 2.1% year-on-year to $5.7 billion helped by growth in life sciences and the banking, financial services & insurance (BFSI) sector. This more than offset dips in retail and manufacturing. Net profit was up 3.7% to $1.1 billion.
“We are pleased to draw a line under the year, which has been challenging. For the next fiscal, we are confident to be back to double-digit growth and getting back to normalcy trajectory,” CEO Rajesh Gopinathan said.
The impact of the results will be seen on Monday when the markets open, but shares of IT firms have been on a roll in the first week of the new year. TCS shares were up 5% in the last five trading sessions and ended at Rs 3,120 on the BSE on Friday.
A large part of the revival is due to winning mega deals from clients who are looking for vendor consolidation as they undertake digital transformation, a necessity in the post-pandemic world. That means customers are spending more on newer technologies like cloud and cyber security to support their shift to remote work. TCS said its total contract value at the end of the third quarter was $6.8 billion, which excludes the acquisition of Postbank Systems from Deutsche Bank.
Life sciences and healthcare business was up 18.2% in constant currency and BFSI 2.4%. “Banking is strong in North America, while retail continues to consolidate,” Gopinathan added. Operating margin was up 160 basis points (100bps = 1 percentage point) to 26.6% in a period when the company also introduced wage hikes.