TCS Q3 Results

We had earlier published an article previewing TCS Q3 results, and the impact of various factors on Earnings of IT Services companies.

TCS was the first company to declare Q3 2016 results (Oct-Dec 2015 quarter) a few hours ago.

Here are the highlights:

1.  Q3 Revenue fell from 4,156 Mn $ to 4,145 Mn $ (in constant currency terms, it was 1.1% higher Q-o-Q
2. Profit was flat from Q2 to Q3 at 926 Mn $
3. 5 % Revenue growth Y-o-Y (which is the lowest in recent times)
4. 7 % of its revenues were “Digital” revenues (which is the next wave of growth); ignio, their Digital platform had a few wins (does this mean 86% of the revenues are legacy / commoditized services ?)
5. 34 ‘100-Mn’ $ clients (increase of 1), and 173 ‘20-Mn’ $ clients (increase by 2)
6. 9,071 net addition of employees, and attrition of 15.9%
7. Including trainees, utilization of 80.9%
8. Chennai floods, and currency movements had an adverse impact
9. No mention of acquisitions in Earnings release

There doesn’t seem to be any immediate catalyst or excitement at least in the Earnings release. Nasscom will have to reduce its growth forecast for 2015-2016.  Next up is Infosys Q3 results…