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.

TCS Q1 earnings

TCS Q1 result: Profit up 5% at ₹9,478 cr on strong deal wins