TCS Q1 Result: PAT Up 16.84% To Rs 11,074 Cr, Interim Dividend of Rs 9 Declared

IT behemoth Tata Consultancy Services (TCS) Ltd. stated on Wednesday that its consolidated net profit for the first quarter of the current fiscal year, which ended in June (Q1FY24), jumped by 16.84% YoY to Rs 11,074 crore from Rs 9, 478 crore in the same quarter last year. From Rs 52,758 crore in June 2022 to Rs 59,381 crore in Q1FY24, TCS' revenue from operations climbed by 12.5% YoY.

"We would like to inform you that at the Board Meeting held today, the Directors have declared an interim dividend of Rs 9 per Equity Share of Rs 1 each of the Company. The interim dividend shall be paid on Monday, August 7, 2023, to the equity shareholders of the Company, whose names appear on the Register of Members of the Company or in the records of the Depositories as beneficial owners of the shares as on Thursday, July 20, 2023, which is the Record Date, fixed for the purpose," said TCS in a stock exchange filing.
K Krithivasan, Chief Executive Officer and Managing Director, said: "It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities."

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: "Our products and platforms achieved major milestones during the quarter with several transformational engagements going live. In the UK Life and Pensions administration space, we signed three new deals on our digital insurance platform, making TCS the undisputed leader in this market on any metric. We are proactively building differentiating capabilities in generative AI and actively working on such projects with our clients, delivering impact on technology, operations and client experience dimensions."

Samir Seksaria, Chief Financial Officer, said: "We have gone ahead and rolled out our annual salary increase with effect from April 1st . Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies. At the same time, we continue to make the investments needed to power our future growth, including expansion of our delivery and research infrastructure."

Milind Lakkad, Chief HR Officer, said: "We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture. Our Return to Office initiative is picking pace, with 55% of the workforce already in office thrice a week. We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle. TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market relevant skills like generative AI, cloud, data and analytics. Our attrition continues to trend down and we expect it to be back in our industry-leading, long term range in the second half of the year. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year."

As of June 30th, TCS had an employee base of 615,318; this is an overall rise of 523 over Q1FY23.