TCS Q1 Results Highlights: Tata Consultancy Services released its results for the first quarter of financial year 2022-23 on July 8. The company's revenue jumped by 16.7 percent YoY to Rs 52,758 crore, where, the net profit climbed by 5 percent YoY to Rs 9,478 crore.
The company said its constant currency (cc) revenue growth was at 15.5 percent year-on-year (YoY). Operating margin was at 23.1 percent, registering a contraction of 2.4 percent YoY.
TCS announced a dividend of Rs 8 per share, which will be credited by August 3, 2022. The record date for the same is July 16, 2022.
IT services attrition continued to climb and was 19.7 per cent on the last twelve months’ basis. In the March quarter, it was at 17.4 per cent. Net headcount addition - which many believe to be leading indicator of future demand - during the period was 14,136, much lower than 35,209 employees in previous quarter. The company gradually accelerated its return to office program in Q1, with about 20 per cent of the workforce now working from office.
The deal win also declined to $8.2 billion during the quarter from $11.3 billion in the previous quarter. The firms said it added nine new clients to the $100 million+ band YoY and 19 clients to the $50 million+ band.
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TCS Q1 net profit rises 5% YoY to Rs 9,478 crore, attrition soars to 19.7%
Revenue from operations of the company during the quarter came in at Rs 52,758 crore... Read More
TCS Q1 Results LIVE |
Tata Consultancy Servicessaw attrition for the Q1FY23 come in at 19.7 percent on a last twelve-month basis, which is the highest in the last six quarters. It is up from 17.4 percent in Q4FY22. TCS added 14,136 employees in the first quarter of FY23, taking its headcount to over 6 lakh. On a year-on-year basis, its net addition numbers were down from 24,000 in Q1FY22 to 14,000 in Q1FY23. Read full report
TCS Q1 Results LIVE |
"Looking into the next three or four quarters, North America will be the strongest driver, in terms of growth perspective,"TCS CEO RajeshGopinathan said, in response to a query during the earnings call.
TCS Q1 Results LIVE |
The deal conversion cycle remains "normal", TCSChief Operating OfficerN Ganapathy Subramaniam said during the earnings call, adding that the company does not see anamolies.
TCS Q1 Results LIVE |
The pricing realisation will be on "case by case basis", TCS' Chief Financial OfficerSamir Seksaria said during the earnings call.CEO RajeshGopinathannoted that margins should start looking up from next quarter.
TCS Q1 Results LIVE |
"We continue to add employees to build capacity for long term growth," TCS CEO Rajesh Gopinathan said, during the earnings conference call.
TCS Q1 Results |
Stay tuned for the latest updates from the earningscall at 5:30 pm.
TCS Q1 Results LIVE |
“It has been a challenging quarter from a cost management perspective. Our Q1 operating margin of 23.1% reflects the impact of our annual salary increase, the elevated cost of managing the talent churn and gradually normalizing travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory," company'sChief Financial OfficerSamirSeksariasaid.
TCS Q1 Resylts LIVE Updates |
The workforce of TCS has crossed the milestone of 6 lakh, with the total headcount as of June 30, 2022, stated to be606,331. The net headcount addition during the quarter was 14,136.
TCS Q1 Results LIVE |
“We are pleased with our execution during the quarter wherein we successfully delivered several transformation programs. The TATA CONSULTANCY SERVICES Building on belief For 1rnrnerl1ate use Press Release Page 2 of 11 investments we made on people, upskilling efforts and select lateral hiring et al helped manage the talent turnover with minimum impact on our operations. During the quarter, we have resumed in-person meetings, and hosted several clients at our facilities. We are bringing in more of our associates back to our development centres, and it is steadily increasing at all levels. On the sustainability front, we have signed our commitment to SBTi version 5 standards during the quarter and are making steady progress towards our net zero journey with tremendous alignment to this initiative across our associates,"N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said
TCS Q1 Results LIVE |
"We are starting the new fiscal year on a strong note, with all-round growth and strong deal wins across all our segments. Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties. Our new organization structure has settled in nicely, getting us closer to our clients and making us nimbler in a dynamic environment. Looking ahead, we remain confident in the resilience of technology spending and the secular tailwinds driving our growth,"Rajesh Gopinathan, TCS Chief Executive Officer and Managing Director, said.
TCS Q1 Results LIVE | Services:
There was strong, broad-based demand across the different services, led by Cloud, Consulting & Service Integration, Cognitive Business Operations and Enterprise Application Services. Key themes driving G&T demand in Q1 were customer experience, cloud transformation and sustainability, TCS said.
TCS Q1 Results LIVE | Markets:
Among major markets, North America led with +19.1% growth; Continental Europe grew +12.1% and UK grew +12.6%. In emerging markets, India grew +20.8%, Asia Pacific grew +6.2%, Latin America grew +21.6%, and Middle East & Africa grew 3.2%, the company said.
TCS Q1 Results LIVE |
Industries: 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%, the press release stated.
TCS Q1 Results LIVE | Highlights of the Quarter Ended June 30, 2022
Revenue at Rs 52,758 crore, +16.2% YoY
• Constant Currency revenue growth: +15.5% YoY
• Operating Margin at 23.1%; contraction of 2.4% YoY
• Net Income at Rs 9,478 crore, +5.2% YoY
Net Margin at 18%
• Net Cash from Operations at Rs 10,810 crore
• Net headcount addition of 14,136 | Workforce strength: 606,331
• Diverse and inclusive workplace: Women in the workforce: 35.5% | 153 Nationalities
• Building a G&T workforce: 12 million learning hours clocked | 1.7 million competencies acquired
• LTM IT Services attrition rate at 19.7%
• Dividend per share: Rs 8.00 | Record date 16/07/2022 | Payment date 03/08/2022
TCS Q1 Results LIVE |
The company's order book stood at $8.2 billion, a press release stated. "Pipeline velocity, deal closures continue to remain strong," TCS CEO Rajesh Gopinathan said.
TCS Q1 Results |
Tata Consultancy Services board has approved a dividend of Rs 8 per share, as per a regulatory filing.
TCS Q1 Results |
The revenue during the April-June quarter of this fiscal came in at Rs 52,758 crore, as per the numbers released by Tata Consultancy Services (TCS).
TCS Q1 Results LIVE |
Net profitcomes in at Rs 9,478 crore during the first quarter of FY23, jumping by 5 percent year-on-year.
TCS Q1 Results LIVE |
Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 1 percent Q-o-Q (up 7.9 percent Y-o-Y) to Rs. 12,510 crore, according to Motilal Oswal.
TCS Q1 Results LIVE |
Motilal OswalexpectsTCSto report net profit at Rs. 10,050 crore up 0.9% quarter-on-quarter (up 11.2% year-on-year). Net Sales are expected to increase by 3.4 percent Q-o-Q (up 15.2 percent Y-o-Y) to Rs. 52,320 crore, according to Motilal Oswal.
TCS Q1 Results LIVE |
A report from Emkay Research expect 2.1 percent sequential revenue growth in US dollar terms as its factors in 190basis points cross-currency headwinds.
TCS Q1 Results LIVE |
“We expect CC revenue growth of 3.7 percent QoQ (2.3 percent QoQ in USD) on strong momentum in digital transformation programs while we expect growth to be broad based across verticals”, a report from the brokerage firm Phillip Capital said.
TCS Q1 Results LIVE |
Experts expect the dollar revenues for the company to grow by close to 11 percent on year and ~2 percent sequentially while constant currency (CC) revenues are expected to grow by 3.5 percent sequentially.
