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India’s largest IT services firm Tata Consultancy Services (TCS) on Friday reported a 5.2 percent year-on-year rise in consolidated net profit to Rs. 9,478 crore for the first quarter ended June 30. The consolidated revenue from operations increased 16.2 percent year-on-year to Rs. 52,758 crore in the first quarter of FY23.
TCS has declared an interim dividend of Rs. 8 per equity share of Re. 1 each.
TCS Chief Executive Officer and Managing Director Rajesh Gopinathan 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 organisation structure has settled in nicely, getting us closer to our clients and making us nimbler in a dynamic environment.” TCS remains confident in the resilience of technology spending and the secular tailwinds driving growth, he said in a statement.
Its Chief Financial Officer Samir Seksaria said it has been a challenging quarter from a cost management perspective.
“Our Q1 operating margin of 23.1 percent reflects the impact of our annual salary increase, the elevated cost of managing the talent churn and gradually normalising travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory,” Seksaria said.