TCS Q3: Revenue Rises, But Profit Declines

• TCS revenue up 4.86% to ₹67,087 crore demonstrating business expansion.
• Net profit declined 14% to ₹10,720 crore impacted by Labour Code.
• Legal claim provisions also contributed significantly to profit decline.

In the recently concluded quarter, TCS showcased a mixed financial performance. While revenue saw an increase, the company's net profit faced a setback. This piece unpacks the key factors that shaped TCS's financial outcomes, providing an insightful overview of the challenges faced.

Revenue Growth Observed

During the period under review, the revenue generated from operations saw an increase. Specifically, the revenue grew by 4.86%, reaching ₹67,087 crore. This is a noticeable increase from the ₹63,973 crore recorded in the corresponding period earlier. The growth in revenue demonstrates the company's capability to expand its business operations and secure a higher income compared to previous performances. This expansion reflects positively on the company's overall market presence and client engagements.

Net Profit Decline Noted

Despite the increase in revenue, the net profit of TCS experienced a downturn, decreasing by 14%. The net profit for the quarter was reported at ₹10,720 crore. This figure reflects a reduction compared to previous periods, hinting at increased expenditures or other financial headwinds that impacted profitability. A primary cause of the decline was the implementation of the Labour Code. Also, provisions made for legal claims played a significant role in reducing the overall profits. These factors together significantly influenced the financial outcome for the quarter.