TCS Q2FY23 PAT up 8.39% at Rs10,431cr as OPM improves sequentially

10 Oct 2022 , 10:32 PM

TCS reported 18.01% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs55,309cr. Revenue growth was 15.4% in constant currency terms.

Sequential revenues were up 4.84%. In terms of revenues from key verticals, retail led with 22.9% constant currency (CC) growth while CMI saw 18.7% CC growth.

The North American Markets led growth at 17.6% yoy in CC terms while UK and Europe grew at 14.8% and 14.1% respectively. Order book for TCS stood at $8.1 billion with book to bill ratio of 1.2:1.

During Q2FY23, TCS added headcount by 9,840, taking total headcount to above 6.16 lakhs. The IT services attrition for the quarter continued to remain elevated at 21.5%.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 8.39% at Rs10,431cr on the back of improved operating performance.

TCS crossed quarterly profits of Rs10,000 crore for the first time with operating margins sequentially higher at 24%.  TCS generated cash from operations of Rs10,675 crore.

Profitability was spread evenly across verticals. PAT margins improved to 18.86% in the Sep-22 quarter compared to 17.97% in the Jun-22 quarter. However, net margins were still lower on a yoy basis due to the pressure on higher manpower and operating costs. Dividend of Rs8 per share has been declared by TCS.

Financial highlights for Sep-22 compared yoy and sequentially

	Tata Consultancy Services
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 55,309	₹ 46,867	18.01%	₹ 52,758	4.84%
Operating Profit (Rs cr)	₹ 13,131	₹ 11,858	10.74%	₹ 11,987	9.54%
Net Profit (Rs cr)	₹ 10,431	₹ 9,624	8.39%	₹ 9,478	10.05%
Diluted EPS (Rs)	₹ 28.51	₹ 26.02		₹ 25.90
OPM	23.74%	25.30%		22.72%
Net Margins	18.86%	20.53%		17.97%