IT service bellwether Tata Consultancy Services (TCS) has reported a 5.2% year-on-year growth in consolidated net profit at ₹9,478 crore for the quarter ending June 30, 2022, primarily due to strong deal wins across segments. TCS's net profit during the same period last year stood at ₹9,008 crore, while its profit was ₹9,926 crore during the previous quarter (Q4 FY22).
TCS' revenue from operations rose 16.2% YoY to ₹52,758 crore during the April-June quarter of FY23 from ₹45,411 during the same period last year, the company says in a stock exchange statement.
TCS' dollar revenue declined to $6,780 million during Q1 FY23 as compared to $6,696 million during the previous quarter. Its constant currency revenue growth was 15.5% YoY during Q1 FY23, while the net cash from operations at ₹10,810 crore i.e. 114.1% of the net income.
The company's net margin for the quarter was 18%, while the operating margin declined 190 bps to 23.1% on a Q-o-Q basis.
TCS' overall growth was led by retail and CPG (25.1%), communications & media (19.6%), manufacturing vertical (16.4%) and technology & services (16.4%). BFSI grew 13.9%, while life sciences and healthcare grew 11.9%. When it comes to the services, the TCS business was led by cloud, followed by consulting & service integration, cognitive business operations and enterprise application services.
Among major markets, North America led with 19.1% growth, followed by the U.K. at 12.6% and Continental Europe at 12.1%. In India, TCS' business grew 20.8% in Q1; 6.2% in Asia Pacific; 21.6% in Latin America; and 3.2% in Middle East & Africa.
Rajesh Gopinathan, chief executive and managing director, TCS, says the new fiscal year has started on a strong note for TCS. "Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties," he says, adding the company's new organisation structure has settled in nicely.
When it comes to R&D, as of June 30, 2022, the company has applied for 6,752 patents, including 169 applied during the said quarter, and has been granted 2,400 patents.
TCS has announced a dividend per share of ₹8, the record date for which is July 16 and the payment date is August 3. TCS boasts of a diverse and inclusive workplace, with a women workforce strength of 35.5% from 153 nationalities.
The attrition rate at TCS stood at 19.7% during the April-June quarter. It says it gradually accelerated its "return to office" programme in Q1, with about 20% of the workforce now working from the office. The company added 14,136 employees during the quarter, and its total workforce strength as of June 30 stood at 6,06,331. "The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.5% of the base," says the IT major.
TCS shares closed at ₹3,266, up 0.66% or ₹21.85, as compared to the previous session close of ₹3,287.85 on the National Stock Exchange (NSE).