Tata Consultancy Services Ltd (TCS) on Thursday reported an 8.72 per cent year-on-year rise in net profit at Rs 12,040 crore for the June quarter compared with Rs 11,074 crore in the same quarter last year. Revenue for the quarter was up 2.24 per cent YoY at Rs 62,613 crore from Rs 61,237 crore in the corresponding quarter last year. Operating margin for the quarter came at 24.7 per cent. Net margin stood at 19.2 per cent, the Tata group firm said in an exchange filing.
Analysts, who were expecting June to be one of the weakest first quarters for domestic IT players in the last one decade, estimated TCS to report 4-9 per cent rise in year-on-year (YoY) profit on up to 5 per cent increase in sales. Margins were anticipated at 24.1-24.3 per cent. The results were largely in line exepctations.
The largest IT major by sales said its board has declared an interim dividend of Rs 10 per share.
TCS said the interim dividend would be paid on Monday, August 5, 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 said all major markets returned to sequential growth. The IT firm said it saw double-digit growth in Emerging Markets, led by India (up 61.8 per cent YoY). Almost all verticals returned to sequential growth; YoY growth was led by Manufacturing (up 9.4 per cent), Energy, Resources & Utilities (up 5.7 per cent), and Life Sciences & Healthcare (up 4 per cent).
IT Services attrition rate came in at 12.1 per cent, TCS said.
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, 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.”