TCS has reported an annualised 8.4 per cent growth in net income at Rs 10,431 crore for the September quarter. Its total revenue from services grew at a much faster pace of 18 per cent to touch Rs 54,309 crore in the period. The company had reported consolidated revenue of Rs 46,867 crore in the year-ago quarter from which it had earned Rs 9,624 crore net income. However, it’s operating margin narrowed by 1.60 percentage points to 24 per cent.
Key Takeaways:
- Revenue at Rs 55,309 crore, +18% YoY
- Constant Currency revenue growth: +15.4% YoY
- Order Book at $8.1 billion
- Book to Bill at 1.2
- Operating Margin at 24%; contraction of 1.6% YoY
- Net Income at Rs 10,431 crore, +8.4% YoY
- Net Margin at 18.9%
- Net Cash from Operations at Rs 10,675 crore i.e. 102.3% of Net Income
- Net headcount addition of 9,840
- Workforce strength: 616,171
- LTM IT Services attrition rate at 21.5%
- Dividend per share: Rs 8.00
- Record date 18/10/2022
- Payment date 07/11/2022
Comments
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “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. 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 rigor to deliver on this imperative.”
Samir Seksaria, Chief Financial Officer, said: “We are steadily making our way towards achieving our operating margin priority for the year, aided by leverage from good growth, the flattening of the workforce pyramid, steadily improving productivity and currency support. Very importantly, the headwinds from the supply-side challenges are abating, so that sets us up well for the seasonally weak second half of the year.”
