TCS - Key Highlights of Q1FY23

Highlights of the Quarter Ended June 30, 2022

- Revenue at Rs. 52,758 crore, +16.2% YoY

- North America (+19.1% CC), Retail (+25.1% CC) lead among segments

- Order Book at $8.2 billion - Book to Bill at 1.2

- Stellar client metrics: 9 new clients added to the 100Mn+ band YoY; 19 clients added to the $50Mn+ band

- Workforce crosses the 600K milestone: Headcount at 606,331

- Constant Currency revenue growth: +15.5% YoY

- Operating Margin at 23.1%; contraction of 2.4% YoY

- Net Income at Rs. 9,478 crore, +5.2% YoY | Net Margin at 18%

- Net Cash from Operations at Rs. 10,810 crore ie 114.1% of Net Income

- Net headcount addition of 14,136 | Workforce strength: 606,331

- Diverse and inclusive workplace: Women in the workforce: 35.5% | 153 Nationalities

- Building a G&T workforce: 12 million learning hours clocked | 1.7 million competencies acquired

- LTM IT Services attrition rate at 19.7%

- Dividend per share: Rs. 8.00 | Record date 16/07/2022 | Payment date 03/08/2022

Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: "We are starting the new fiscal year on a strong note, with all-round 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. Our new organization structure has settled in nicely, getting us closer to our clients and making us nimbler in a dynamic environment. Looking ahead, we remain confident in the resilience of technology spending and the secular tailwinds driving our growth."

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: "We are pleased with our execution during the quarter wherein we successfully delivered several transformation programs. The investments we made on people, upskilling efforts and select lateral hiring et al helped manage the talent turnover with minimum impact on our operations. During the quarter, we have resumed in-person meetings, and hosted several clients at our facilities. We are bringing in more of our associates back to our development centres, and it is steadily increasing at all levels. On the sustainability front, we have signed our commitment to SBTi version 5 standards during the quarter and are making steady progress towards our net zero journey with tremendous alignment to this initiative across our associates."

Samir Seksaria, Chief Financial Officer, said: "It has been a challenging quarter from a cost management perspective. Our Q1 operating margin of 23.1% reflects the impact of our annual salary increase, the elevated cost of managing the talent churn and gradually normalizing travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory."

Milind Lakkad, Chief HR Officer, said: "Our investment in strategic talent development initiatives and the linking of learning to career development have energized our workforce. Following our annual compensation review, employees received salary increases of 5 to 8%, with top performers getting even bigger hikes. Our empowering, performance-driven work culture is helping us attract local talent across all our key markets. Continued hiring momentum resulted in a milestone quarter, with the employee strength crossing the 600,000 mark."

Shares of Tata Consultancy Services Limited was last trading in BSE at Rs. 3264.85 as compared to the previous close of Rs. 3286.95. The total number of shares traded during the day was 76501 in over 7093 trades.

The stock hit an intraday high of Rs. 3300.25 and intraday low of 3250.05. The net turnover during the day was Rs. 251203829.00.

Source : Equity Bulls

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TataConsultancyServices INE467B01029 TCS KeyHighlights Q1FY23