Tata Consultancy Services reported a 16.8 percent increase in net profit on a year-on-year (YoY) basis in the quarter ended June 30.
Its performance is driven by a strong growth in total contract value (TCV) deal wins despite a challenging business environment.
Revenue
Consolidated revenue for the quarter came in at Rs 59,381 crore, an on-year surge of 13 percent.
In constant currency terms, the revenue grew by 7 percent YoY.
In dollar terms, the revenue grew by 4 percent from the previous quarter to $7,226 million.
Poor growth overall
The software services exporter grew by a modest 0.4 percent, which is its slowest growth in the last 12 quarters.
Net profit declined by 3 percent as against the March quarter.
Industry-wise performance
Among the various industries to which TCS caters to, the business growth was led by life sciences and healthcare at 10.1 percent.
This is followed by the manufacturing vertical which grew 9.4 percent, BFSI by 3 percent, retail and CPG by 5.3 percent, technology and services by 4.4 percent while communications and media grew 0.5 percent.
Presence in various markets
Among the major markets, the United Kingdom led with 16.1 percent growth; North America grew 4.6 percent and Continental Europe grew 3.4 percent.
In emerging markets, Middle East and Africa grew 15.2 percent, India grew 14 percent, Latin America grew 13.5 percent, and Asia Pacific grew 4.7 percent.
Employee addition
TCS added 523 employees on a net basis during this quarter, a slight dip from last quarter’s 821 employees.
With this, the company’s headcount stood at 6,15,318 as of June 30.
Attrition
Attrition levels dipped to 17.8 percent on the last-twelve-months basis.
The figure last quarter stood at 20.1 percent.
Chief Human Resources Officer Milind Lakkad said that the company expects attrition to trend down and be in the long-term range by the second half of the year.
Slowing hiring
The firm has been slowing down its hiring in the last few quarters, after it added a record number of employees in FY22.
It added 22,600 employees on a net basis in all of FY23, as opposed to 1.03 lakh in FY22.
Asked to comment on the delays in fresher and literal hires onboarding, Lakkad said that they are committed to honouring all offers that were made, with the company’s focus on “leveraging the capacity” it built last year.
Work from office
Lakkad said that 53 percent of the company’s workforce is in office thrice a week, after the company asked employees to return to offices for work.
“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,” Lakkad said.
