Tata Consultancy Services (TCS) on Thursday reported a decent performance for the June quarter, with a consolidated net profit of Rs 12,040 crore, a 9 per cent growth compared to the Rs 11,120 crore in the same period last year. This result outperformed market expectations, by quite a margin.
The top Indian IT player’s revenue from operations climbed to Rs 62,613 crore, showing a 5.4 per cent growth compared to Rs 59,381 crore reported in the corresponding quarter of the previous year. Despite this year-on-year (YoY) increase, the company’s profit after tax (PAT) saw a sequential decline of over 3 per cent from Rs 12,502 crore reported in Q4FY24.
TCS’s board has declared an interim dividend of Rs 10 per share, scheduled for payment on 5 August, 2024. The dividend will be distributed to equity shareholders recorded as of 20 July 2024, which has been designated as the record date.
In a statement, K Krithivasan, Chief Executive Officer and Managing Director, said, “I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePor in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe.”
The quarter also saw an improvement in TCS’s consolidated operating margin, which stood at 24.7 per cent, an expansion of 1.5 per cent YoY. The net margin for the period was 19.2 per cent.
The company reported sequential growth across all its major markets, with particularly strong double-digit growth in emerging markets, led by India, which achieved an impressive 62 per cent YoY growth. TCS also witnessed YoY growth across almost all its verticals, with manufacturing growing by 9.4 per cent, energy, resources & utilities by 5.7 per cent and life sciences & healthcare by 4 per cent.
“In spite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence. We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios and creating long term value for our stakeholders,” said Samir Seksaria, Chief Financial Officer.
The company also reported a workforce of 6,06,998 employees, with a net headcount addition of 5,452 in Q1. Meanwhile, TCS’s last twelve months (LTM) IT services attrition rate was at 12.1 per cent during the quarter.
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