Tata Consultancy Services (TCS), India’s largest IT services company, on Thursday reported a 9 per cent rise year-on-year in its consolidated net profit to Rs 12,040 crore for first quarter of the financial year 2024-25 ended June 30. The results beat the market expectations. Its revenue from operations during April-June 2024 increased 5.4 per cent year-on-year to Rs 62,613 crore.
Analysts expected a profit of Rs 11,999 crore and a revenue of Rs 62,190 crore.
The company also released a Rs 10 dividend.
“We would like to inform you that at the Board Meeting held today, the Directors have declared an interim dividend of ₹ 10 per Equity Share of ₹1 each of the Company,” TCS said in a BSE filing.
The interim dividend shall be paid on Monday, August 5, 2024, to the equity shareholders of the company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Saturday, July 20, 2024, which is the Record Date, fixed for the purpose.
TCS’s IT services attrition rate on a last-twelve-month (LTM) basis stood at 12.1%, and the company added a total headcount of 5,452. As of June 30, 2024, TCS had a total workforce of 6,06,998 employees. The company’s operating margin was 24.7%, marking a 1.5% year-on-year rise.
TCS highlighted that all major markets returned to sequential growth, with very strong double-digit growth in emerging markets, led by India (+61.8% YoY). Almost all verticals showed sequential growth, with year-on-year growth led by manufacturing (+9.4%), energy, resources & utilities (+5.7%), and life sciences & healthcare (+4.0%).
K Krithivasan, Chief Executive Officer and Managing Director, said, “I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies, and invest in innovation, including a new AI-focused TCS PacePort in France, IoT lab in the US, and expanding our delivery centers in Latin America, Canada, and Europe.”
Samir Seksaria, Chief Financial Officer of TCS, commented, “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, Chief HR Officer of TCS, stated, “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.”
