DBT Bureau
Bengaluru, 11 July 2024
Tata Consultancy Services posted a net profit of Rs 12,040 crore, an increase of 8.7% over a period year ago in the first quarter of current financial year (Q1FY25).
For the quarter ended June, TCS’ revenue stood at Rs 62,613 crore, which was an increase of 5.4% year-on-year basis. Revenue in constant currency term grew 4.4% year-on-year basis.
Its order book at the end of June quarter stood at $8.3 billion with North America contributing the most at $4.6 billion.
“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 centres in Latin America, Canada and Europe,” K Krithivasan, CEO and MD of TCS said in a company release.
Operating margin of the company stood at 24.7%, a fall of 130 basis points from the previous quarter as the company rolled out wage hikes for its employees.
“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,” Samir Seksaria, Chief Financial Officer of TCS said.
The company said that all its major markets including the US returned to sequential growth with very strong double-digit growth in emerging markets, led by India that posted 61.8% YoY rise during the quarter.
The Tata Group company also said that almost all verticals returned to sequential growth, with manufacturing growing by 9.4% year-on-year basis; energy, resources & utilities growing by 5.7% and life sciences & healthcare rising by 4% during this period.
After several quarters, TCS also saw its headcount rising during the first quarter ended June 2024. The company saw a net headcount addition of 5,452 to touch a total employee strength of 6,06,998 during this period. Its attrition came down further to 12.1%, the company said in the exchange filing.
