TCS Q1 Results: Net profit at Rs 11,074 crore, beats analysts estimates; board declares Rs 9/share dividend
TCS Q1 Highlights: Tata Consultancy Services (TCS) kicked off the corporate earnings season for India Inc on July 12, with a better-than-expected net profit for the June quarter. Its revenue and margin, however, fell short of analysts estimates by a thin margin. Catch minute-by-minute updates, management commentary, the views of Zee Business Managing Editor Anil Singhvi and other experts, and much more here.
TCS Q1 HIGHLIGHTS: Tata Consultancy Services (TCS) — a Tata group giant that is the country's biggest IT services company — reported its financial results for the April-June period on Wednesday, July 12, kicking off the corporate earnings season for India Inc. TCS reported a 2.8 per cent sequential decline in net profit to Rs 11,074 crore for the June quarter, beating analysts' estimates. Its revenue increased 0.4 per cent to Rs 59,381 crore and operating margin contracted by 130 basis points to 23.2 per cent, both slightly below estimates.
Tata Consultancy Services CEO and Managing Director K Krithivasan, who took charge last month, said the company remains confident in the longer-term demand for its 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," he said. Key takeaways from TCS Q1 results
The TCS board declared an interim dividend of Rs 9 per share, with a record date of July 20.
Here are highlights of the TCS earnings viz-a-viz market expectations, the Tata group IT company's management commentary, and the views of Zee Business Managing Editor Anil Singhvi and other experts:
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TCS board announces Rs 9/share dividend, sets July 20 as record date
TCS Q1 Results | IT major says its order book at $10.2 billion
TCS says its book-to-bill ratio — a key metric which determines how quickly a business fulfils demand for its products — stands at 1.4.
TCS remains focused on developing, retaining, rewarding best talent in industry: Chief HR Officer Milind Lakkad
TCS has given a 12-15 per cent raise for exceptional performers in its latest annual compensation review, and also commenced the promotions cycle, its Chief HR Officer Milind Lakkad highlights. “We remain focused on and enhancing their effectiveness by bringing them back to office to foster our culture. Our Return to Office initiative is picking pace, with 55% of the workforce already in office thrice a week," he says.
"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 CFO Samir Seksaria says operating margin reflects 200-bps impact of annual salary increase
TCS Chief Financial Officer Samir Seksaria points out that the company rolled out an annual salary increase with effect from April 1. "Our operating margin of 23.2 per cent 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," he says.
TCS Q4 Results | COO N Ganapathy Subramaniam says company's products & platforms achieved major milestones in Q1
TCS signed three new deals on its digital insurance platform in the UK Life and Pensions administration space, becoming the undisputed leader in this market on any metric, according to its Chief Operating Officer and Executive Director, N Ganapathy Subramaniam.
"We are proactively building differentiating capabilities in generative AI and actively working on such projects with our clients, deliveringimpact on technology, operations and client experience dimensions," he says.
TCS Q4 Results | Operating margin slips to 23.2% from 24.5% in previous quarter
Zee Business analysts had pegged the IT services exporter's margin at 23.3 per cent for the June quarter.
TCS Q1 Results | Constant currency revenue growth at 7% vs 10.7% in Q4
According to Zee Business research, the Tata group giant's revenue growth in constant currency terms was estimated at 0.4 per cent on a sequential basis.
TCS Q4 results | Net headcount addition at 523, takes IT major's workforce to 6,15,318
Tata Consultancy Services says attrition in its IT services unit stands at 17.8 per cent on a trailing 12 months basis.
TCS CEO K Krithivasan says it's very satisfying to start new fiscal year with a string of marquee deal wins
TCS CEO and Managing Director K Krithivasan says the company remains confident in the longer-term demand for its 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," he says.
TCS Q1 RESULTS | REVENUE AT RS 59,381 CRORE VS RS 59,162 CRORE IN Q4
TCS Q1 RESULTS | NET PROFIT AT RS 11,074 CRORE VS RS 11,392 CRORE IN Q4
TCS Q1 RESULTS | NET PROFIT AT RS 11,074 CRORE VS ZEE BUSINESS ESTIMATE OF RS 10,900 CRORE
TCS shares end 0.5% lower ahead of Q1 results announcement
The stock declines by Rs 14.9 or 0.5 per cent for the day to settle at Rs 3,257 apiece on BSE. On NSE, TCS shares end at Rs 3,261 apiece, down by Rs 11.5 or 0.4 per cent on the day.
TCS shares under pressure amid muted trade ahead of Q1 results today
Tata Consultancy Services shares slip into the red again after briefly making it to the green in intraday trade, as investors eagerly await the Tata group IT giant's earnings announcements. The TCS stock is down by Rs 13.6 or 0.4 per cent at Rs 3,258.3 apiece on BSE, minutes ahead of the closing bell on Dalal Street, having gyrated within a narrow range — between Rs 3,290.4 and Rs 3,250.3 apiece — in intraday trade.
Here's how the TCS stock has moved so far today:
Image: BSE
TCS Q1 results today | Tata Consultancy Services' margin estimated to decline by 120 bps sequentially
According to Zee Business research, the Mumbai-based IT major's margin for the June quarter is estimated at 23.3 per cent. That translates to a drop of 120 basis points compared with a margin of 24.5 per cent for the previous three months.
The analysts fear higher wage expenses — caused by elevated levels of attrition — are likely to have led to margin pressure for the company in the first quarter of the current quarter, as scrapped and delayed projects come in the way of its revenue growth.
TCS Q1 Results Today | Revenue seen growing 0.8% vs Q4
Tata Consultancy Services is estimated to report 0.8 per cent expansion in revenue — in rupee and dollar terms alike — compared with the last quarter of the financial year gone by, according to Zee Business research. The analysts peg its rupee reveue at Rs 59,650 crore and dollar revenue at $7,250 million.
TCS Q1 Results Today | Revenue seen growing 0.8% vs Q4
Tata Consultancy Services is estimated to report 0.8 per cent expansion in revenue — in rupee and dollar terms alike — compared with the last quarter of the financial year gone by, according to Zee Business research. The analysts peg its rupee reveue at Rs 59,650 crore and dollar revenue at $7,250 million.
TCS Q1 Results Today | Tata Consultancy Services seen reporting 4.3% sequential decline in profit
With TCS all set to kick off the results season for India Inc, investors await eagerly for the Tata group IT giant to report its financial results, due post-market hours today. This is the company's first earnings report since its new CEO K Krithivasan took charge in June after Rajesh Gopinathan resigned to pursue his other interests.
According to Zee Business research, TCS is expected to report a net profit of Rs 10,900 crore for the April-June period, which translates to a decline of 4.3 per cent on a quarter-on-quarter basis — in stark contrast to a five per cent rise for the previous quarter.
Read more on what to expect from TCS today
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Tata Consultancy Services, the Tata group giant which is India's largest IT company, is all set to kick off the corporate earnings season for India Inc.
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