TCS Q1 results: TCS Q1 results: Consolidated PAT rises 28.5% YoY to Rs. 9,008 cr, misses estimate; co to pay Rs. 7/share dividend

MUMBAI: India’s largest information technology company Tata Consultancy Services today reported a 28.5 per cent year-on-year growth in its consolidated net profit to Rs. 9,008 crore for the quarter ended June. The company’s consolidated revenues for the quarter surged 18.5 per cent on-year to Rs. 45,411 crore.

Analysts had expect the IT services firm to report near 5 per cent sequential growth in consolidated net sales to Rs. 45,850 crore for the quarter and consolidated net profit of Rs. 9,370 crore.

On a sequential basis, the company’s constant currency topline in core markets and verticals grew 4.1 per cent in the reported quarter. Whereas, topline growth in rupee terms was at 3.9 per cent much lower than expectations.

The company’s board also approved an interim dividend of Rs. 7 per share.

“Our business in North America, BFSI and retail all showed an appreciable growth which underlines the resilience of our operating model, relevance of our offerings and above all, the passion and dedication of our associates,” said Managing Director and Chief Executive Officer Rajesh Gopinathan, in a press statement.

The city-based company’s operating performance for the quarter was firm as consolidated operating margins expanded 190 basis points on a year-on-year basis to 25.5 per cent. On a sequential basis, though, margins shrank 130 basis points reflecting the impact of wage hikes undertaken by the company to retain talent.

The company’s order book again showed significant strength as it managed order wins worth $8.1 billion in the June quarter, a 17.3 per cent growth on year. “We once again had a superior quarter with a TCV of $8.1 billion which is broad based across markets and verticals. Our G+T themes are seeing traction in the market place,” said N Ganapathy Subramaniam, chief operating officer.

Crucially, the IT services giant managed to keep a lid on attrition which came in at 8.6 per cent, the lowest in the industry. “In less than two months, over half a million associates and family members and over 70 per cent of our associates have been vaccinated, and we are on track to vaccinate all TCSers and families by September,” said Milind Lakkad, Chief HR Officer.

Shares of

ended 0.7 per cent lower at Rs. 3,253 on the National Stock Exchange today.