An ET NOW survey of analysts had projected a quarterly profit of Rs 8,073 crore for the Tata Group company.
Along with its results, TCS said its board approved a share buyback proposal amounting to Rs 16 billion. With this, TCS has become the first technology company to opt for a share buyback in fiscal year 21. The company last made a share buyback in 2018 for the same amount.
The company will buy 5.33.33.333 shares at Rs 3,000 per share, a premium of 9.59 percent from the last closing price. In terms of size, Wednesday’s buyback was 1.55 percent of the company’s total market capitalization of Rs 10,27,177.79 crore, at closing value.
The company also approved an interim dividend of Rs 12 per share.
The software exporter said its revenue for the quarter increased to Rs 40,135 crore from Rs 38,977 crore YoY. The company stated that its cash conversion was strong, as net cash from operations stood at Rs 10,618 crore, 125.9 percent of net income.
“Driving accelerated business value realization from our clients’ digital investments has resulted in broad-based revenue growth. Strong order book, very strong deal portfolio, and continued market share gains give us confidence to the future, “said Rajesh Gopinathan, TCS CEO and CEO.
Total deals won during the quarter was $ 8.6 billion compared to $ 6.9 billion in the June quarter and $ 8.9 billion in the March quarter.
The company also allocated Rs 1,218 million to a legal claim disposition.
“We have always held that growth is the best margin lever, and that is very evident in our figures this quarter. It is very gratifying to see each financial metric precisely where we would like it to be, with a stellar operating margin regardless of the currency. neutral, strong cash conversion and the lowest DSO ever, ”said V Ramakrishnan, TCS CFO.
The IT leader said that, in terms of segment, BFSI (+ 6.2%), Retail and CPG (+ 8.8%) and Life Sciences and Health (+ 6.9%) led growth this quarter . Technology and services grew 3.1 percent, manufacturing 1.4 percent, while communications and media fell 2.4 percent.
“All markets showed good sequential growth, with North America growing 3.6%, the UK 3.8% and continental Europe 6.1%. Emerging markets also grew well, with India growing 20%, MEA 8%, Latin America 5.5% and Asia Pacific 2.9%, ”the company said in a statement.
The company’s operating margin expanded 2.2% year-on-year to 26.2%. The net margin was 21 percent. TCS, unlike its peers, does not offer an annual income guide.
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