Tata Consultancy Services (TCS) Ltd on Monday said consolidated net profit for the quarter ended September 30 rose 8.4% to ₹10,431 crore as compared to a year ago. This is the first time that the quarterly net profit has crossed the ₹10,000 crore mark. Net margin was 18.9%, the company said.
Revenue grew 18% to ₹55,309 crore. Constant-currency revenue growth was 15.4%.
The company’s board declared a dividend of ₹8 per share. Net Headcount with Addition 9,840 during the quarter, the company’s workforce was 6,16,171.
“We closed the quarter on a strong note,” TCS CEO and MD Rajesh Gopinathan told Media Press. “Demand for our services remains very strong. We have posted strong, profitable growth across all of our industry segments and across all of our key markets.”
“This was a milestone quarter for us as we crossed ₹10,000 crore in net profit. It was a satisfactory quarter from a financial point of view,” he said.
challenges lie ahead
However, he added, “Of course, the environment is challenging and requires all of us to be vigilant and we demonstrated once again that our service portfolio and focus on innovation and cost optimization are very relevant as customers are more vulnerable to volatility and challenges.” Let’s deal,” he added.
He further added, “Our order book is holding up well with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagement.”
Mitul Shah, Head of Research, Reliance Securities, said: “We believe that IT services will remain untouched by deteriorating global macros in the face of rising inflation, economic slowdown, currency adversity and potential cutbacks in spending.”
“Revenue growth will decelerate to low double digits in FY24, while QoQ decline in the order book, pronounced lower employee additions, higher attrition and lower pricing power will result in multiple contractions valuations close to its historical average”Mitul ShahHead of Research, Reliance Securities
“Revenue growth will decelerate to low double digits in FY24E, while QoQ decline in the order book, pronounced lower employee additions, higher attrition and lower pricing power will result in multiple contraction valuations close to its historical average. So at the moment we have a ‘SELL’ rating on TCS.
TCS COO and ED N. ganpati subramaniam , Told: “Our delivery leadership converged during the quarter and we are raising the bar on execution excellence with a framework like rigor in change. We are delighted that our office facilities are once again the center of discussion, with more and more of our employees and customers celebrating togetherness to realize their full potential.”
Growth in the quarter was led by the retail and CPG verticals (22.9%), communications and media (18.7%), and . was done by Technology and Services (15.9%). Manufacturing as well as Life Sciences and Healthcare verticals grew by 14.5%, while BFSI grew by 13.1%.
Among the major markets, North America led with a growth of 17.6%; Continental Europe rose 14.1% and the UK 14.8%.
Among emerging markets, India grew by 16.7%, Latin America by 19%, Middle East and Africa by 8.2% and Asia-Pacific by 7%. The company said TCS established its Latin American operations 20 years ago and this market has crossed $1 billion in revenue.
The company said there was strong, broad-based growth across all services in Q2 led by cloud, enterprise application services and cybersecurity.