Infosys, TCS announce 12% profit in Q3; Wipro’s growth at 2.3%

Infosys and Tata Consultancy Services (TCS) have recorded a strong growth in the third quarter of financial year 2022, while IT peer Wipro fell short of expectations despite showing consistent performance in the last few quarters.

The three IT companies announced their third quarter financial results for FY21-22 on Wednesday.

Shares of Tata Consultancy Services (TCS) gained over two per cent on Thursday, after the firm reported a 12.2 per cent jump in December quarter net profit on handsome revenue growth, and guided towards maintaining the same momentum going forward.

The stock gained 2.25 per cent to ₹3,944.40 at the BSE, and it jumped 1.63 per cent to ₹3,923 on the NSE.

TCS, India’s largest software exporter reported a 12.2 per cent jump in December quarter net profit at ₹9,769 crore on handsome revenue growth on Wednesday, and guided towards maintaining the same momentum going forward on the back of a strong demand environment.

The company, the cash cow of the over $100 billion Tata Group, witnessed a 16.3 per cent jump in its revenue to ₹48,885 crore for the reporting quarter.

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The company, which is sitting on cash and equivalent of over ₹65,000 crore, also announced a buyback offer of up to ₹18,000-crore, where it has committed to pay ₹4,500 per share.

“The demand environment is strong and the possibility of growth headroom is very high. Our aim is to maintain the momentum and we will go all out for the same,” TCS Managing Director and Chief Executive Rajesh Gopinathan said.

Wipro reported a 2.3 per cent sequential growth in the third quarter revenue – $264 billion in terms of dollar and 3 per cent sequential growth in terms of rupee. Its net profit came to $399.10 million (₹2,949 crore) in the third quarter, which is a 1.3 per cent increase from the second quarter ending September.

A day after Wipro announced its profit, its shares fell by over 6 per cent on Thursday.

(With inputs from agencies)