TCS Net Profit Jumps By 5.2%; Earned Rs 105 Crore Per Day In 90 Days!

The IT giant Tata Consultancy Services has released a glum earnings result for the June 2022 ending quarter on July 8, 2022.

Its consolidated net profit even though rose 5.2% on a YoY basis in the quarter, failed to meet the analysts’ expectations. The company’s revenue, however, rose over 16% in the quarter.

Here’s a detailed report of TCS’ Q1 FY23 earnings, along with its attrition figure and an interim dividend announcement.

Financial Results For June 2022 Quarter

The IT bellwether’s consolidated net profit, as mentioned above did not meet the analysts’ target but. It climbed 5.2% on a YoY basis but dropped 4.5% on a sequential basis to Rs 9,478 crore in the June quarter.

The figure stood at Rs 9,008 crore in the June quarter of FY22 (last year).

TCS’ revenue from operations surged almost 16.2% YoY and 4.3% QoQ to Rs 52,758 crore in the Apr-Jun 2022 quarter, while the constant currency revenue grew at 15.5% YoY and the dollar revenue climbed 10% YoY to $6,780 million in the period.

Further, the IT giant announced an interim dividend of Rs 8/share, credited to the shareholders’ accounts by August 3, 2022, and the record date for this is set at July 16, 2022.

The company’s operating margin declined to 23.1% in Q1 FY22, compared to 25.5% last year and 25% in the last quarter. 

Its total deal win during the quarter fell to $8.2 billion, compared to $11.3 billion in the March 2022 quarter. The giant onboarded 9 new clients to the $100 million+ band on a YoY basis and 19 clients to the $50 million+ band in the period.

Attrition Rate Jumps to Nearly 20%

In the quarter under review, TCS’ attrition rate jumped to 19.7% over the past 12 months, compared to 17.4% in the March quarter.

Its headcount in the quarter increased by 14,136 employees, which is still lesser than 35,209 employees added in the previous quarter.

“Our investment in strategic talent development initiatives and the linking of learning to career development have energized our workforce. Following our annual compensation review, employees received salary increases of 5-8%, with top performers getting even bigger hikes,” said the company’s chief HR officer Milind Lakkad.

During Q1, TCS marched towards the return to office program and has about 20% workforce now working from office.