TCS (Tata Consultancy Services) reported on 9 January 2023 that a 10.98 per cent hike in its compact net profit at Rs 10,883 crore for the quarter ended December 2022. The company had posted a yield of Rs 9,806 crore in the year-ago period. The consolidated remuneration from operations came in at Rs 58,229 crore, up 19.11 per cent against Rs 48,885 crore in the corresponding quarter of the previous fiscal. The revenue beat expectations but the profit was below expectations.
The company said that in constant currency terms, the revenue rose 13.5 per cent year-on-year (YoY). Adding that growth was led by North America & UK, which rose 15.4 per cent YoY. Operating margin stood at 24.5 per cent – contracting by 0.5 per cent YoY. Net margin came in at 18.6 per cent. In a seasonally-weak quarter, analysts had estimated the Tata group company to report 2.9 percent quarter-on-quarter (QoQ) growth in revenue, while net profit was projected to increase 7.8 percent QoQ in the October-December quarter. The company also announced a dividend of Rs 75 per share including Rs 67 as a special dividend. The record date for dividends is January 17 and the payment date is 3 February 2023.
Rajesh Gopinathan, the Chief Executive Officer and Managing Director of TCS said ““We are pleased with our strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and the UK. The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust.”
TCS’ net headcount went down by 2,197 employees, the company said. Its last twelve-month IT Services attrition rate was at 21.3 percent.
