On Monday, Tata Consultancy Services (TCS), India’s top IT company, announced a net profit of INR 10,846 crore (about $1.47 billion) for the third quarter ending December 2022, an increase of 11.02% from the same period the previous year. TCS’ revenue also rose by 19.1% to INR 58,229 crore (about $7.9 billion) for the quarter. The company’s board declared a dividend of INR 75 per share, including a special dividend of INR 67 per share. TCS shares rose by 3.35% to INR 3,319.70 on the Bombay Stock Exchange prior to the announcement.

TCS CEO Rajesh Gopinathan stated that the company’s strong growth, driven by cloud services and market share gains, was due to the continued demand for their services and the value they provide to clients in enhancing their competitiveness. Despite current uncertainties, Gopinathan said that TCS’ long-term growth outlook remains robust.

According to TCS, growth was driven by the retail and consumer packaged goods (CPG) sector (18.7%), as well as the life sciences and healthcare (14.4%) industries. The communications and media sector saw growth of 13.5%, while technology and services grew by 13.6%. The manufacturing industry grew by 12.5% and the financial services sector (BFSI) grew by 11.1%. TCS reported an operating margin of 24.5%.

In terms of major markets, North America and the UK led with 15.4% growth, and Continental Europe grew by 9.7%. Emerging markets also saw growth, with Latin America at 14.6%, India at 9.1%, Asia Pacific at 9.5%, and the Middle East and Africa at 8.6%. TCS Executive Director and COO N Ganapathy Subramaniam noted that the company successfully delivered complex transformation programs in a hybrid working model, tailored to the specific needs of their clients, while also working on reimagining solutions in their delivery centers and PacePort labs.

TCS attributed the expansion of its operating margin in Q3 to improved productivity, currency support, and the resolution of supply-side challenges. The company stated, “This gives us greater confidence in our ability to steer our profitability towards our preferred range, while continuing to invest in building newer capabilities to support our growth and market share gains.”