India's biggest IT firm Tata Consultancy Services (TCS) has reported a 14.8 percent year-on-year (YoY) increase in consolidated net profit at Rs 11,392 crore for the quarter ended March 31, 2023. The IT services major reported a profit of Rs 10,846 crore in the December 2022 quarter.
Growth came below expectations, in a seasonally-weak quarter, analysts had estimated the Tata Group company to report 2.1 percent quarter-on-quarter (QoQ) growth in revenue, while net profit was projected to increase 6.2 percent QoQ in the January-March quarter.
Consolidated revenue from operations came in at Rs 59,162 crore, up 16.9 percent, from Rs 50,591 crore in the year-ago quarter. It stood at Rs 58,229 crore in the December quarter of FY23.
In constant currency (cc) terms, the revenue rose 10.7 percent year-on-year (YoY), the company said.
Earnings before interest and taxes (EBIT) stood at Rs 14,488 crore with EBIT margin contracting 0.5 percent YoY to 24.5 percent. Net margin came in at 19.3 percent.
According to the company, revenue growth was driven by the UK (17 percent QoQ), retail & consumer packaged goods (CPG) (13 percent QoQ) and life sciences and healthcare (12 QoQ percent).
The order book for the quarter stood at $10 billion with the total FY23 order book TCV (total contract value) coming in at $34 billion.
“It is very satisfying to look back at our strong growth in FY 2023, on top of the mid-teen growth in the prior year. The strength of our order book demonstrates the resilience of demand for our services and gives us visibility for growth in the medium term. Krithi and I are working closely to ensure that the leadership transition over the next few months is smooth and seamless to all our stakeholders and that TCS is well positioned to capture the opportunities ahead,” said Chief Executive Officer and Managing Director, Rajesh Gopinathan.
TCS's net headcount went up by 821 employees for the quarter, the company said. Its last twelve-month IT Services attrition rate was at 20.1 percent.
The company also announced a final dividend of Rs 24 per share.
“FY 23 was a year of transition, as supply-side challenges abated while pandemic-depressed travel and discretionary spending normalised. We navigated this change well, without slowing down our investments in our people, research and innovation and intellectual property. Our longer-term competitiveness remains intact, giving us industry-leading profitability even as we pursue our growth aspirations,” said Samir Seksaria, Chief Financial Officer, TCS.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
