TCS Q1 results miss estimates; dividend declared

TCS Q1 net profit rises on-year: TCS has reported a decline in net profit QoQ to Rs 9,519 crore in Apr-Jun 2022 period, below analysts' expectations. Motilal Oswal had earlier estimated a net profit of about Rs 10,050 crore. In the same period last year, the net profit was Rs 9,008 crore.

TCS Q1 revenue matches estimates: TCS' revenue increased 16.2% on-year and 4.2% on-quarter to Rs 52,758 crore in Apr-June 2022, in line with expectations. Analysts had anticipated revenue of Rs 52,603 crore. In constant currency, the increase in revenue is 15.5% year-on-year (YoY).

Growth was led by Retail and CPG (25.1%), BFSI (+13.9%), and the Manufacturing vertical (+16.4%). Technology & Services grew +16.4%, Life Sciences and Healthcare grew +11.9% and Communications & Media grew +19.6%. 

TCS Q1 results- Geographical Revenue: All Industry Verticals Grow Mid to High teens. Among major markets, growth was led by North America (+19.1%) and Continental Europe (+12.1%), while the UK grew by +12.6%. Among emerging markets, growth was led by Latin America (+21.6%), and India outperformed with growth of (+20.8%), followed by Asia Pacific (+6.2%) and the Middle East & Africa (+3.2).

TCS quarterly results- Margins decline: TCS’s operating margin stood at 23.1%, a fall of 190 basis points from the previous quarter. The net margins for Q1FY23 also declined to 18% compared to previous quarter. The Net Income for Q1FY23 stood at Rs 9,478 crore, up by 5.2% YoY.

TCS earnings- Deal wins: TCS had healthy deal wins in the first quarter of the new financial year. The company's order book stood at $8.2 billion. The company added 9 clients to the $100 million+ bucket and 19 clients to the $50 million+ bucket.

TCS Q1FY23 earnings- Attrition: TCS said that the attrition increased to 19.7% compared to 17.4% in the last quarter. Employee headcount stood at 6,06,331, a net addition of 14.136 in the quarter. 

TCS Q1 results- Dividend: The board has declared an interim dividend of Rs 8 per share for the fifth consecutive quarter. The record date is 16th July 2022, and the payment date for the dividend is August 3rd, 2022.
TCS quarterly results 2023- Management Commentary: "We are starting the new fiscal year on a strong note, with all-around growth and strong deal wins across all our segments. Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties. Our new organization structure has settled in nicely, getting us closer to our clients and making us nimbler in a dynamic environment.", Rajesh Gopinathan, TCS Chief Executive Officer and Managing Director.