India’s largest IT services company, Tata Consultancy Services (TCS), on Friday announced a 5.2% year-on-year increase in its consolidated net profit to Rs. 9,478 crores for the first quarter ended June 30. Consolidated operating revenue increased by 16.2% year-on-year to reach Rs. 52,758 crore in the first quarter of FY23.
TCS has declared an interim dividend of Rs. 8 per share of Re. 1 each.
Rajesh Gopinathan, Chief Executive Officer and Chief Executive Officer of TCS, said, “We are starting the new fiscal year on a positive note, with overall growth and deals closed across all of our segments.”
“Pipeline velocity and deal closures continue to be strong, but we remain vigilant, given macro-level uncertainties. Our new organizational structure has settled in, bringing us closer to our customers and making us more agile in a dynamic environment. TCS remains confident in the resilience of tech spending and the secular tailwinds driving growth, it said in a statement.
Its chief financial officer, Samir Seksaria, said the quarter was difficult from a cost management perspective.
“Our first quarter operating margin of 23.1% reflects the impact of our annual salary increase, the high cost of managing talent turnover and the gradual normalization of travel expenses. However, our cost structures longer term and our relative competitiveness remain unchanged and position us well to continue on our path of profitable growth,” Seksaria said.
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