TCS logs robust 16.8% y-o-y growth in net profit for June quarter; stock zooms ~3%

13 Jul 2023 , 10:44 AM

Tata Consultancy Services Limited announced its results for the quarter ending June 2023 and has reported a 16.8% y-o-y jump in its net profit, fueled by robust growth in total contract value deals even in a tough business environment.

Company reported a consolidated revenue of Rs 59,381 crore in Q1FY24, up by 13% y-o-y against the previous corresponding quarter. In terms of constant currency, revenue jumped by 7% y-o-y.

Sequentially, the country’s largest software services exporter grew by 0.4%, being the slowest growth rate in the previous 12 quarters. In comparison to the March quarter, net profit fell by 3%.

Further, the company’s board has announced an interim dividend of Rs 9 per share.

The company’s order book in Q1FY24 stood at $10.2 billion, and the book-to-bill ratio was 1.4. This is slightly higher than the previous quarter’s order win of $10 billion.

Due to wage increases announced on April 1, the EBIT margin or operating margin fell to 23.2% from 24.49% in the previous quarter.

TCS’s business growth was led by life sciences and healthcare at 10.1%. The manufacturing vertical registered growth of 9.4%, BFSI clocked 3% growth, growth of retail and CPG at 5.3%, technology, and services growth was reported at 4.4%, and communications and media growth came in at 0.5%.

At around 10.42 AM, Tata Consultancy was trading 2.88% higher at Rs 3,353.80 per piece, against the previous close of Rs 3,259.90 on NSE. The counter touched an intraday high and low of Rs 3,360 and Rs 3,272.75, respectively.

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