TCS's Q3: Revenue up, profits down—here's what's going on
Tata Consultancy Services (TCS) just posted a 5% jump in revenue for the third quarter, hitting ₹67,087cr and beating estimates.
But it wasn't all good news—net profit actually dropped 14% to ₹10,657cr.
So, while the money coming in grew, actual earnings took a hit.
What else changed? Margins steady, jobs down
Even with more revenue, TCS kept its operating margin flat at 25.2%.
But there was a noticeable cut in staff—over 11,000 fewer employees this quarter.
HCLTech saw smaller job cuts too. It's part of a bigger trend across IT companies right now.
AI is booming—and so are big deals
On the bright side, TCS landed contracts worth $9.3 billion and saw its AI-related revenue soar by over 17% to $1.8 billion for the year.
HCLTech also reported solid growth in core earnings but faced some restructuring costs.
Still rewarding shareholders
Despite lower profits, both TCS and HCLTech announced dividends—TCS is giving ₹57 per share (including a special bonus), while HCLTech is offering ₹12 per share—to keep investor spirits up during these ups and downs.