The country’s largest IT firm Tata Consultancy Services (TCS) reported a consolidated net profit of Rs 10,431 crore for Q1FY23, an increase of 8.3 per cent year-on-year (YoY). This is against a net profit of Rs 9,624 crore in the year-ago period, TCS said in a regulatory filing.
The revenue of the IT major grew 15.4 per cent to Rs 55,309 crore in constant currency, compared to Rs 46,867 crore a year ago. The UK and European markets have defied the pessimistic economic outlook, posting stronger growth in Q2 versus Q1, the company said. It added that the growth was ‘very strong’ across all verticals in the quarter ended September 30. The retail sector posted the highest growth, of 22.9 per cent YoY.
On a sequential basis, the net profit was up 10 per cent from Rs 9,478 crore in the previous quarter. The revenue jumped 4.8 per cent against Rs 52,758 crore in Q1 FY23.
“Demand for our services continues to be very strong. We registered strong profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration, and outsourcing engagements. As clients prepare for a more challenging environment ahead, technologies like cloud that have been embraced, now have to be fully leveraged to realise the promised value. TCS has the combination of contextual knowledge, technology expertise, and execution rigour to deliver on this imperative,” said Rajesh Gopinathan, Chief Executive Officer (CEO) and Managing Director of TCS.
Operating margins shrank 1.6 per cent from a year ago. The margins for the quarter dipped to 24 per cent.
Samir Seksaria, Chief Financial Officer, said: “We are steadily making our way towards achieving our operating margin priority for the year, aided by leverage from good growth, the flattening of the workforce pyramid, steadily improving productivity and currency support. Very importantly, the headwinds from the supply-side challenges are abating, so that sets us up well for the seasonally weak second half of the year.”
The company has reported a net addition of 9,840 employees in the quarter. The headcount now stands at 616,171.
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