Tata Consultancy Services (TCS) Ltd, the Indian IT behemoth, reported solid growth in the first quarter of the current fiscal year (Q1 FY25). It reported an 8.72 percent year-on-year (YoY) increase in net profit to Rs 12,040 crore in the June quarter, compared to Rs 11,074 crore in the same quarter previous year.
However, operational revenue was static. It increased 2.24 percent YoY to Rs 62,613 crore from Rs61,237 crore in the same quarter previous year. The quarterly operating margin was 24.7 percent. The Tata group entity reported a net margin of 19.2% in an exchange filing.
Here are the important takeaways from the IT giant's quarterly results:
* The operating margin increased by 1.5 percent YoY.
* Net income at Rs 12,040 crore, up 8.7% year on year; net margin at 19.2%.
* Net cash from operations totaled Rs 11,168 crore, accounting for 92.8 percent of net income.
* Women make up 35.5% of the workforce, representing 152 different countries.
* LTM IT services attrition rate was 12.1%.
* TCS declared a dividend of Rs 10 with July 7 as the record date and August 5 as the payout date.
K Krithivasan, CEO and Managing Director, stated, "I am glad to announce a robust start to the new fiscal year, with overall growth across industries and markets. We are continuing to grow our client connections, develop new skills in emerging technologies, and invest in innovation, including a new AI-focused TCS PacePort in France, an IoT lab in the United States, and the expansion of our delivery centers in Latin America, Canada, and Europe."
The Q1 FY24 results were revealed after market hours today. Earlier in the day, TCS shares closed 0.33 percent higher at Rs 3,922.70. Meanwhile, domestic markets closed marginally down amid tumultuous trading.
Samir Seksaria, Chief Financial Officer, said: “In spite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence. We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios, and creating long-term value for our stakeholders.”
Milind Lakkad, CHRO, said: “I am delighted to announce the successful completion of our annual increment process. Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense satisfaction.”
