Highlights of the Quarter Ended June 30, 2024
– Revenue: ₹62,613 crore, up 5.4% YoY and 4.4% YoY in constant currency.
– Operating Margin: 24.7%, a 1.5% increase YoY.
– Net Income: ₹12,040 crore, an 8.7% rise YoY, with a net margin of 19.2%.
– Net Cash from Operations: ₹11,168 crore, 92.8% of net income.
– Workforce: 606,998 employees, with a net headcount addition of 5,452.
– Diversity and Inclusion: Women make up 35.5% of the workforce, representing 151 nationalities.
– LTM IT Services Attrition Rate: 12.1%.
– Dividend: ₹10.00 per share; record date is July 20, 2024, with payment on August 5, 2024.
TCS 1QFY25 results:
Revenue Performance:
– Total revenue stood at USD 7,505 million, showing a growth of 1.9% quarter-on-quarter (QoQ) and 3.9% year-on-year (YoY). This exceeded both internal and market expectations, which anticipated a 1.1% QoQ increase.
– Constant currency (CC) revenue increased by 2.2% QoQ and 4.4% YoY.
Revenue in INR:
– Revenue in Indian Rupees (INR) was INR 626 billion, reflecting a QoQ growth of 2.2% and YoY growth of 5.4%.
Profitability:
– Earnings Before Interest and Taxes (EBIT) margins were 24.7%, which is a decrease of 133 basis points (bps) QoQ but an improvement of 150 bps YoY. This performance was in line with both internal and market estimates of 24.6%.
Profit After Tax (PAT):
– PAT was INR 120.4 billion, showing a QoQ decline of 3.2% but a YoY increase of 8.7%. This result was consistent with the expected PAT of INR 120 billion as per internal and market forecasts.
Total Contract Value (TCV):
– TCV for the quarter was USD 8.3 billion, marking a decline of 37.1% QoQ and 18.6% YoY. The decrease indicates softer contract signings compared to the previous quarter and the same quarter last year.
Employee Metrics:
– TCS added a net of 5,452 employees during the quarter, a significant increase compared to the net addition of 1,759 employees in the previous quarter.
– Attrition rate was 12.1%, slightly lower than the 12.5% recorded in the previous quarter.
These results highlight TCS’s strong revenue growth exceeding expectations, stable margins, and noteworthy employee additions amid a moderated TCV for the quarter.
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