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Tata Consultancy Services, India's largest IT services provider, has announced an 8.4% YoY growth in its profits for the quarter that ended in September 2022, beating all estimates.
The company's revenues grew 18% YoY to Rs 55,309 crores against Rs 46,867 crores reported in the corresponding quarter last year. Growth was led by the North American, European, and UK businesses which grew 17.6%, 14.1%, and 14.8% respectively. However, other income of the company declined 13% YoY to Rs 965 crores.
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The company had operating margins of 24% during the quarter, up sequentially but down annually with employee benefit expenses rising the most during the quarter. Profit for the quarter stood at Rs 10,431 crores, crossing the Rs 10,000 crores mark for the first time in a quarter. The order book of the company stood at $8.1 billion as revenue for the half year ended in September 2022 passed the Rs 1 lakh crore mark.
As opposed to its peers, the attrition rate at TCS spiked to 21.5%. Its workforce stood at 616,171, a net addition of 9,840 employees during the quarter.
“Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration, and outsourcing engagements.” said Rajesh Gopinathan, CEO & MD of TCS.
“As clients prepare for a more challenging environment ahead, technologies like cloud that have been embraced now have to be fully leveraged to realize the promised value. TCS has the combination of contextual knowledge, technology expertise and execution rigour to deliver on this imperative.” he added.
The company expects to continue achieving $7-9 billion TCV for the next few quarters as it aims to double revenues to $50 billion by 2030. It also believes that attrition has peaked during the quarter and will taper down in the upcoming quarters.
The stock closed at Rs 3,160.15 per share on Tuesday.
Article by Aman Agarwal
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