TCS First Quarter Results: Net Profit Increases 16.8% To Rs 11,074 Crore, Revenue Increases 13%; Dividend Announced

The biggest provider of IT services in India, Tata Consultancy Services (TCS), on Wednesday announced a consolidated net profit of Rs 11,074 crore, or 16.8%, for the quarter ending in June 2023.The leading provider of IT services had previously declared a net profit of Rs 11,392 crore.

Brokerage firms predicted that TCS’ earnings would likely increase 16% YoY to Rs 11,017 crore in the April–June 2023 period, but it may decrease 3.3% sequentially.

To Rs 59,381 crore, total income climbed by over 13% YoY.The biggest software exporter in the nation saw its worst increase in 12 quarters as a result of the topline increasing only 0.4% sequentially. The profit was down about 3% from the March quarter.

Due to pay increases announced on April 1, EBIT margin, or operating margin, decreased to 23.2% from 24.9% in the previous quarter.

“We remain optimistic about the demand for our services over the long run, which is being fueled by the introduction of innovative technology. TCS Chief Executive Officer K Krithivasan said, “We are investing early in creating capabilities at scale on these new technologies, as well as in research and innovation.

N Ganapathy Subramaniam, chief operational officer of TCS, said, “We are aggressively establishing unique skills in generative AI and actively engaging on such projects with our customers, providing impact on technology, operations, and client experience dimensions.

Interim Dividend for TCS

The interim dividend payment of Rs 9 per share has been authorized by the board.”The interim dividend shall be paid on Monday, August 7, 2023, 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 of Thursday, July 20, 2023, which is the Record Date, fixed for such purpose,” TCS stated in a regulatory filing.

on Hiring TCS

The company that specializes in IT said it won’t be recruiting as aggressively this year and would instead concentrate on using the employees it already has on board.

“While we are committed to honoring all of the offers we have made, our focus will be on leveraging the capacity we built last year,” Milind Lakkad, the company’s chief human resources officer, said.

Thus, over the three months that concluded in June, the business only net employed 523 new workers, bringing its whole headcount to 6.15 lakh.

This closely follows the tremendous recruiting that IT firms undertook over the previous two years as they tried to keep up with an unexpected influx of contracts from the US and European markets.

High levels of attrition were a result of the talent war in the IT sector. But according to Lakkad, everything should be back to normal by the second part of the current year. Attrition has reached a 12-month low of 17.8% as of the end of June.

“Our attrition continues to trend down, and we expect it to be back in our industry-leading, long-term range in the second half of the year,” the executive added.