TCS Q1 Results: Profit Rise 17% YoY to 11,074 Crore; Dividend ₹9/share

Tata Consultancy Services (TCS) has released its Q1 earnings report, indicating a 12.5% increase in revenue from operations. The company’s revenue rose to Rs 59,381 crore in the quarter, compared to Rs 52,758 crore in the same period last year (June 2022). However, there was a sequential decline in profit, with Q1 profit dropping nearly 3% from Rs 11,392 crore in the previous quarter (December 2022).

Tata Consultancy Services (TCS) has announced its financial results for the first quarter ended June 30, 2023. The company reported a remarkable 17% year-on-year (YoY) increase in net profit, driven by strong growth in total contract value (TCV) deal wins, despite a challenging business environment.

During the quarter, TCS achieved consolidated revenue of INR 59,381 crore, reflecting a substantial 13% YoY growth. In constant currency terms, the revenue witnessed a 7% YoY increase.

In terms of US dollars, the revenue rose by 4% from the previous quarter to $7,226 million, according to the company’s official release.

These results align with the subdued estimates given the weakened demand environment. Sequentially, the largest software services exporter in the country experienced a modest 0.4% growth, marking its slowest expansion in the past 12 quarters. Net profit declined by 3% compared to the preceding March quarter.

The board declared an interim dividend of ₹9 per share.

Result is broadly inline with expectation

  • Order book ($ Bn ) came at $ 10.2 Mn vs QoQ $ 10 Mn, YoY $ 8.2 Mn
  • CC yoY came at 7% vs QoQ 10.7%, YoY 15.5%
  • QoQ CC revenue growth 0% vs Expectation 0.5%
  • Dollar revenue came at $ 7226 Mn,(0.4% QoQ, 6.6% YoY) vs expectation of $ 7235 Mn, QoQ $ 7195 Mn, YoY $ 6780 Mn
  • Net sales came at Rs. 59381 Cr (0.4% QoQ, 12.6% YoY) vs expectation of Rs. 59600.5 Cr, QoQ Rs. 59162 Cr, YoY Rs. 52758 Cr
  • EBIT came at Rs. 13755 Cr (-5.1% QoQ, 12.9% YoY) vs expectation of Rs. 13955.5 Cr, QoQ Rs. 14488 Cr, YoY Rs. 12186 Cr
  • EBIT Margin came at 23.2% vs expectation of 23.4%, QoQ 24.5%, YoY 23.1%
  • Adj. PAT came at Rs. 11074 Cr vs expectation of Rs. 10935.5 Cr, QoQ Rs. 11392 Cr, YoY Rs. 9478 Cr
  • Quarter EPS is Rs. 30.3
  • Stock is trading at P/E of 25.3x FY24E EPS

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