Information Technology bellwether Tata Consultancy Services (TCS) on Friday reported a 5.21 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 9,478 crore in the April-June quarter as against Rs 9,008 crore in the same quarter last year. However, it missed analyst estimates.
An ET NOW poll of analysts had expected the profit to be at Rs 9,910 crore. The consolidated revenue of TCS grew 16.2 per cent YoY to Rs 52,758 crore compared with Rs 45,411 crore in the year-ago quarter
CEO and MD Rajesh Gopinathan said, “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.”
Moreover, the company’s board has also announced an interim dividend of around Rs 8 per Equity Share, TCS said in the exchange filing.
TCS’ Ebit margin was 23.1 per cent in the first quarter compared with 25 per cent in the March quarter and 25.5 per cent in the June quarter last year.
TCS employee strength breaches 600,000-mark
In the first quarter of the ongoing fiscal, the IT major hired 14,136 employees, taking the total workforce strength to 6,06,331. “Continued hiring momentum resulted in a milestone quarter, with employee strength crossing the 600,000 mark,” said Milind Lakkad, Chief HR Officer, TCS.
The attrition rate continued to inch up to 19.7 per cent. Moreover, with Covid-19 cases subsiding, TCS gradually returned to the work from office model in Q1 and now 20 per cent of its workforce works from office.
Sharing its order book was at $8.2 billion, TCS said it has added nine new clients to the 100 million-plus band YoY, while 19 clients were added to the $50 million-plus band.
TCS’s growth was majorly led by retail and CPG (25.1 per cent), Communications & Media (19.6 per cent), Manufacturing vertical (16.4 per cent) and Technology & Services (16.4 per cent). BFSI climbed 14 per cent while Life Sciences and Healthcare grew 12 per cent.
While Latin America led the growth with 21.6 per cent jump, India grew 20.8 per cent, Asia Pacific 6.2 per cent, Middle East & Africa 3.2 per cent, among other major markets.
