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TCS Q1 results key takeaways: Employee costs up 18% YoY, firm declares dividend of Rs 8 and more

TCS Q1 results key takeaways: Employee costs up 18% YoY, firm declares dividend of Rs 8 and more

The company announced its results post-market hours. Earlier in the day, shares of the company closed 0.67 per cent down at Rs 3264.85 while the benchmark equity index BSE Sensex settled 303 points or 0.56 per cent, higher at 54,481.84.

TCS Q1 results TCS Q1 results

IT major Tata Consultancy Services (TCS) on Friday posted a 5.21 per cent year-on-year (YoY) growth in consolidated net profit at Rs 9,478 crore for the quarter ended June 30, 2022. However, the bottom line of the company declined 4.51 per cent on a quarter-on-quarter (QoQ) basis. The figure stood at Rs 9,008 crore in the corresponding quarter a year ago and Rs 9,926 in the sequential quarter ended March 31, 2022. On the other hand, revenue from operation increased by 16.18 per cent YoY and 4.28 per cent QoQ to Rs 52,758 crore.

The company announced its results post-market hours. Earlier in the day, shares of the company closed 0.67 per cent down at Rs 3264.85 while the benchmark equity index BSE Sensex settled 303 points or 0.56 per cent, higher at 54,481.84.

Samir Seksaria, chief financial officer, TCS said, “It has been a challenging quarter from a cost management perspective. Our Q1 operating margin of 23.1 per cent reflects the impact of our annual salary increase, the elevated cost of managing the talent churn and gradually normalizing travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory.”

Here are other key takeaways from the first-quarter results of TCS.

What’s in it for shareholders? The company also declared an interim dividend of Rs 8 per equity share. The company has fixed July 16, 2022 as a record date for dividend and the same shall be paid by the company by August 3.

Net cash from operations: The company had around Rs 10,810 crore of net cash from operations as of March 31, 2022. The figure comes to around 114 per cent of net income.

Update on global markets: Among major markets, North America witnessed a growth of 19.1 per cent. It was followed by Continental Europe (over 12.1 per cent) and the UK (over 12.6 per cent). In emerging markets, India grew over 20.8 per cent, the Asia Pacific grew 6.2 per cent, Latin America grew 21.6 per cent, and the Middle East & Africa grew 3.2 per cent.

Research and Innovation: As of June 30, 2022, the company has applied for 6,752 patents, including 169 applied during the quarter, and has been granted 2,400 patents.

From the desk of CEO: Commenting on Q1FY23 results, Rajesh Gopinathan, chief executive officer and managing director, said, “We are starting the new fiscal year on a strong note, with all-around growth and strong deal wins across all our segments. Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties.”

“Our new organization structure has settled in nicely, getting us closer to our clients and making us nimbler in a dynamic environment. Looking ahead, we remain confident in the resilience of technology spending and the secular tailwinds driving our growth,” he added.

For employees: TCS’ workforce stood at 606,331 as of June 30, a net addition of 14,136 during the quarter. “The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.5 per cent of the base,” TCS said in a regulatory filing.

Employee cost: Employee cost of TCS jumped 18.23 per cent YoY to Rs 30,327 crore during the quarter under review. The figure stood at Rs 25649 in Q1FY22.

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