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Business News/ Markets / Stock Markets/  TCS Q1 Results: Net profit jumps 16.84% on year to 11,074 crores; declares dividend

TCS Q1 Results: Net profit jumps 16.84% on year to ₹11,074 crores; declares dividend

TCS reports a 16.84% YoY rise in Q1 net profit to ₹11,074 crore, but a 2.8% decline sequentially. Shares end down 0.36% on BSE.

Tata Consultancy Services reports its Q1FY24 earnings post market hours on Wednesday.Premium
Tata Consultancy Services reports its Q1FY24 earnings post market hours on Wednesday.

Information Technology (IT) services major, Tata Consultancy Services (TCS) Ltd on Wednesday reported an 16.84% year-on-year rise in its consolidated net profit (attributable to shareholders of the company) for the fiscal's first quarter ended June (Q1FY24) to 11,074 crore. The company had reported a profit of 9, 478 crore in the year-ago period. Sequentially, the consolidated net profit was down 2.8%. TCS shares ended at 3,260.20 apiece, down 0.36% on BSE.

The IT company's consolidated revenue from operations stood at 59,381 crores during the quarter ended June from 52,758 crore in Q1FY23. Sequentially, up 0.4% from 59,162 crore in Q4FY23.

The company's consolidated total income for the quarter ended June surged 13.5% year-on-year to 60,778 crore, and sequentially rose by 0.7%. 

The company's operating margin decreased from 24.5% in Q4FY23 to 23.2% in Q1FY24, a 130 basis point decline. It increased merely 0.1% year over year.

“We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies. At the same time, we continue to make the investments needed to power our future growth, including expansion of our delivery and research infrastructure," said Samir Seksaria, Chief Financial Officer of the company.

TCS' order book reached $10.2 billion in the first quarter of FY24. In constant currency terms, revenue grew by 7% year over year, while the company's attrition rate for the period was 17.8%. During the quarter, the company hired 523 new workers. 615,318 employees work there in total.

"It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximise our participation in these opportunities," said K Krithivasan, Chief Executive Officer and Managing Director. 

According to the company's exchange filing, among the key markets, the United Kingdom led with 16.1% growth, followed by North America at 4.6% and Continental Europe at 3.4%. Middle East and Africa experienced growth of 15.2%, India experienced growth of 14%, Latin America experienced growth of 13.5%, and Asia Pacific saw growth of 4.7%.

"Our products and platforms achieved major milestones during the quarter with several transformational engagements going live. In the UK Life and Pensions administration space, we signed three new deals on our digital insurance platform, making TCS the undisputed leader in this market on any metric. 

We are proactively building differentiating capabilities in generative AI and actively working on such projects with our clients, delivering impact on technology, operations and client experience dimensions,"said N Ganapathy Subramaniam, Chief Operating Officer and Executive Director. 

The company has declared an interim dividend of 9. 

“We would like to inform you that at the board meeting held today, the directors have declared an interim dividend of 9 per Equity Share of 1 each ," said the company in an exchange filing.

TCS Q1FY24 earnings preview: IT major is likely to see muted revenue growth on project delays; EBIT margin may contract

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Published: 12 Jul 2023, 04:04 PM IST
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