TCS Q1 Results: India's biggest IT services company Tata Consultancy Services (TCS) announced its financial results for the first quarter ended June 30, 2023. The largest IT exporter in the country kickstarted the first quarter (Q1 FY24) earnings season by beating Street estimates.
Watch: TCS management commentary on Q1FY24 earnings report
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TCV has been quite good in the last two quarters: CEO Krithivasan
The number of our clients are into efficiency cycles, they are reassessing and that's why the delay, he said.
Aspiration for margins are at 25-26%, we are trying to claw back and creep up: CFO Samir Seksaria
"Don't see large scale rampdown or cancellations, that's not driving softness. It's reprioritisation mainly", says TCS CEO.
TCS Q1FY24 Highlights
-Net Profit down 2.8% QoQ At Rs 11,074 Crore
-Rupee Revenue up 0.4% QoQ At Rs 59,381 Crore
-EBIT Margin At 23.2% Vs 24.5% (QoQ)
-Interim Dividend Of Rs 9/Share Announced
-Order Wins At $10.2 Billion Vs $10 Billion (QoQ) TCS Q1FY24 Segments QoQ
-BFSIUp 0.2%
-Mfg Up 1.5%
-Retail Up 1.1%
-Communication Down 1%
-Life Science Up 0.8%
TCS Q1 order book grows to $10.2 billion, clients focus on exploring generative AI
Tata Consultancy Services (TCS) reported a strong order book of $10.2 billion for the first quarter of fiscal year 2024. Beating macroeconomic headwinds in the United Kingdom this quarter, the IT services major surpassed its quarterly deal win guidance of $7-9 billion. The total contract value (TCV) for Q1 was up by 24.39 percent on a year-on-year (YoY) basis as compared to $8.2 billion reported in Q1FY23. Last quarter, TCV stood at $10 billion.
TCS adds 523 employees in Q1FY24 on a net basis, attrition falls to 17.8%
With this, the company’s headcount stood at 6,15,318 as of June 30, 2023. The slowdown in hiring is expected as the industry faces mounting macroeconomic headwinds leading to a demand environment. The attrition levels of India’s largest IT services company dipped to 17.8 percent on the last-twelve-months basis, down from last quarter’s 20.1 percent. Read more here.
TCS Results Q1 2023 Live: IT major outperforms rivals over past year
TCS management comments on appraisals for current fiscal
TCS management comments on salary
TCS Results Q1 2023 Live: Net profit rises 16.8% to Rs 11,074 crore, beats estimates
TCS reported a nearly 17 percent year-on-year (YoY) rise in consolidated net profit for the June quarter to Rs 11,074 crore. This beats Street estimates as the analysts predicted the net profit estimate at Rs 10,886 crore.
Moreover, consolidated revenue increased nearly 13 percent YoY to Rs 59,381 crore, which was slightly lower than the estimated Rs 59,500 crore.
TCS Results Q1 2023: CEO K Krithivasan's commentary on earnings report
K Krithivasan, Chief Executive Officer and Managing Director, said: “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 maximize our participation in these opportunities.”
N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: “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.”
TCS Results Q1 2023: Rolled out annual salary increase wef April 1; given 12-15% raise for exceptional performers
Amid salary buzz among employees, TCS chief financial officer (CFO) said, “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.”
Milind Lakkad, Chief HR Officer, said: “We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture. Our Return to Office initiative is picking pace, with 53% of the workforce already in office thrice a week. We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle. TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market relevant skills like generative AI, cloud, data and analytics. Our attrition continues to trend down and we expect it to be back in our industry-leading, long term range in the second half of the year. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year.”
TCS Results Q1 2023: Revenue in constant currency terms grows 7% at $7.226 billion
TCS Results Q1 2023: Board declared interim dividend
TCS board of directors also declared interim dividend of Rs 9 per share. "The interim dividend shall be paid on Monday, August 7, 2023, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, July 20, 2023, which is the Record Date, fixed for the purpose," TCS said in a regulatory filing.
TCS Results Q1 2023 Live: Net profit rises 16.8% YoY to Rs 11,074 crore, revenue up 12%
India's biggest IT services company Tata Consultancy Services (TCS) on July 12 reported at 16.8 percent rise in consolidated profit at Rs 11,074 crore for the quarter ended June 30, 2023. The IT services major had reported a net profit of Rs 11,392 crore in the year-ago period.
However, sequentially, the net profit was down almost 3 percent from Rs 11,392 crore in the previous December quarter.
TCS' revenue from operations increased 12.5 percent to Rs 59,381 crore in the said quarter from Rs 52,758 crore in June 2022.
TCS Q1 Results: TCS shares end lower ahead of earnings
Shares of TCS on July 12 slipped in red ahead of Q1FY24 earnings. The scrip ended 0.45 percent lower at Rs 3,257 apiece on BSE against its previous close.
TCS Q1 Results: IT major to declare Q1FY24 financial results shortly
TCS is all set to announce its results for the first quarter ended 30 June, 2023. It may also consider an interim dividend to the equity shareholders for the financial year 2023-2024.
Stay tuned for all LIVE updates here
TCS Q1 Results Live: Dividend, Record Date
TCS' board will also consider declaration of an interim dividend to the equity shareholders for the financial year 2023-2024. "The interim dividend, if declared, shall be paid to the equity shareholders of the Company whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday: July 20, 2023, which is the Record Date fixed for the purpose," TCS said.
TCS Q1 Earnings Live: Result date, time
The board of TCS will meet on July 12 to approve and take on record the audited standalone financial results of the company for the quarter ending June 30, 2023. The result will be declared after the market hours. The IT services company will also hold press conference post declaration of results at 5:30 PM IST.
TCS Q1 Results Live: IT major plans to train 25,000 engineers on Azure Open AI
Recently, TCS announced that it plans to impart training to 25,000 engineers on Azure Open AI to help clients accelerate the adoption of the technology.
The company said that it plans to significantly scale its Azure Open AI expertise and launch its new Generative AI offering for enterprises.
TCS already has over 50,000 AI-trained associates, and the collective knowledge of its dedicated Microsoft Business Unit (MBU), TCS has been helping clients in their AI journeys.
TCS share price update
Ahead of the Q1 results, TCS is seen trading in red. At 1 pm IST, shares of TCS are trading 0.35 percent lower at Rs 3,260.35 apiece on BSE against its previous close.
TCS has been moving within a range. The stock has faced resistance near the Rs 3,360 level and support zone at Rs 3,170 level. The scrip has been almost flat in year-to-date (YTD) basis.
TCS Results Q1 2023 Live: EBIT margin, dollar revenue expectations
The mean Earnings Before Interest Tax (EBIT) margin in Q1FY24 is forecasted to be 23.32 percent, a 91 basis points decrease sequentially but a 48 basis points increase YoY, according to the brokerage firms.
Dollar revenues for the April-June quarter are expected to be around USD 723.4 crore, a 0.5 percent growth sequentially and a 6.7 percent growth YoY.
TCS Results Q1 2023 Live: Analysts weigh in
According to an average of the estimates by Motilal Oswal, Kotak Institutional Equities, Jefferies and ICICI Securities, the company is expected to report a revenue of Rs 59,480 crore in Q1FY24. This is supposed to be a mere 0.5 percent increase QoQ (quarter-on-quarter) but a 12.7 percent increase YoY (year-on-year).
According to a mean consensus of the above mentioned brokerage firms,TCSis also expected to register a decline in its profits. The net profit estimate for Q1FY24 is Rs 10,886 crore, which is a 4.6 percent decline quarter-on-quarter against Rs 11,436 crore reported earlier.
TCS vs Infosys vs Wipro vs HCL Tech: Derivatives outlook on Tech stocks ahead of Q1 earnings results
The results seasons in IT services sector begins this week with large cap tech companies such as TCS, HCL Tech, Wipro and Infosys announcing their results. IT stocks have underperformed in the recent rally as analysts expect revenues to be under pressure because of a likely recession in the United States.
TCS Q1 Results Live: Catch all the action ahead of the results on our Social Media handles
TCS, India’s largest IT service provider will declare its results today. Tune in to Moneycontrol's Youtube channel at 5.30 PM today for the #Q1FY24 earnings call!
TCS Q1 Results Live: TCS, HCL Tech Q1 Today; What to expect?
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TCS Q1 Results Live: Indian IT to see a March rerun as tepid demand
In continuation of the trends from the March quarter, analysts again expect Tier 2 IT companies to fare better than the Tier 1 players. However, foreseeing improved margins and strong order books, the brokerages have maintained preference for some of the Tier-1 IT majors. Read what the analysts speculate about Indian IT's Q1
TCS Q1 Results Live: TCS Stock slips into red, ahead of results
TCS share price slipped into the red after opening higher on July 12 ahead of the release of June quarter results. TCS shares were trading 0.29 percent lower at Rs 3,262.25 apiece on the BSE.
TCS Q1 Results Live: TCS & HCL Tech in focus | Market Minutes
In this episode of Market Minutes, Shailaja Mohapatra puts the spotlight on what to expect from TCS and HCL Tech Q1 results. Listen in
TCS Q1 Results Live: Muted revenue growth expected amid wage hikes, macro-headwinds, say analysts
According to an average of the estimates by Motilal Oswal, Kotak Institutional Equities, Jefferies and ICICI Securities, the company is expected to report a revenue of Rs 59,480 crore in Q1FY24. This is supposed to be a mere 0.5 percent increase QoQ (quarter-on-quarter) but a 12.7 percent increase YoY (year-on-year).
Read what else the analysts said
TCS Q1 Results Live: Five things to watch out for
Tata Consultancy Services (TCS) is set to kickstart the IT sector earnings season today. This will be the first quarter its new CEO K Krithivasan directly addressing the earnings conference. Analysts expect the first quarter ended June 30, 2023 will be subdued for all IT companies, with slowing demand and several macroeconomic challenges leading to client companies rethinking tech budgets.
Here are the five themes to watch out for in TCS Q1 earnings performance
TCS Q1 Results Live: TCS shares open higher ahead of Q1 earnings
TCS shares opened higher on the bourses on July 12 ahead of the announcement of its financial results for the first quarter of FY24. TCS shares opened at Rs 3,275.15 apiece, the previous close was at Rs 3,271.85 on the BSE.
