TCS Q1 results meet estimates: Net profit rises 9% on-year to Rs 12,040 crore; Rs 10 dividend declared

"We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort in France, IoT (Internet of Things) lab in the US and expanding our delivery centers in Latin America, Canada and Europe,” TCS CEO K Krithivasan said in a statement.

Samir Seksaria, Chief Financial Officer, said: “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,” he added.

The company reported total contract value of $8.3 billion in Q1, which has declined both on a YoY and sequential basis. In Q4, TCS had witnessed record high quarterly order book of $13.2 billion.

Geographically, demand was led by India market which grew 61.8% YoY in CC terms, followed by MEA growing 8.5% YoY CC, Asia Pacific at 7.6% YoY CC and Latin America grew 6.3% YoY in CC. Largest markets including North America grew declined 1.1% in CC YoY, UK grew by 6% in CC YoY and Continental Europe grew only 0.9% in CC YoY.

Among verticals, BFSI which accounts for 30-40% of the company's revenue continued to decline YoY by 0.9% in CC terms, along with consumer business degrowing 0.3%, technology services declining by 3.9% and communication and media declining by 7.4% respectively.

Surprisingly regional markets continued to grow 37.7% YoY in CC terms, Manufacturing grew by 9.4%, Life Sciences and Healthcare grew by 4% and Energy Resources and Utilities grew 5.7% YoY.