Operational efficiencies, margin expansion aid TCS numbers in Q3

Operational efficiencies and modest gains from the currency drove the performance of Tata Consultancy Services (TCS) in the December quarter, which is a seasonally weak one. India’s largest IT services company reported sequentially flat growth in its net profit at Rs 8,118 crore in Q3.

The company beat street estimates on operating income, which grew 6.5% sequentially at Rs 9,974 crore, led by cost cutting measures and currency gains. Margins were up 100 basis points sequentially to 25% during the quarter. The company’s board has recommended a dividend of Rs 5 per share.