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, back filling 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.
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