Tata Consultancy Services, India's top IT services company, reported a bigger-than-expected first-quarter revenue owing to execution of large deals bagged in previous quarters. The company's consolidated revenue rose 5.4% to 626.13 billion rupees in the June quarter. Analysts expected revenue at 622.07 billion rupees, as per LSEG data.
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Company’s margins took a hit due to the wage hike cycle during the quarter as EBIT margin narrowed to 24.7 per cent for Q1. The company's board also approved an interim dividend of ₹10 per share for the quarter.
K Krithivasan, Chief Executive Officer and Managing Director, said, “I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort™ in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe.”
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A look at what TCS Q1 results revealed:
Revenue for the quarter was up 2.24 per cent YoY at ₹62,613 crore from ₹61,237 crore in the corresponding quarter last year. Operating margin for the quarter came at 24.7 per cent. Net margin stood at 19.2 per cent. The company said it saw double-digit growth in Emerging Markets, led by India (up 61.8 per cent YoY). Almost all verticals returned to sequential growth; YoY growth was led by Manufacturing (up 9.4 per cent), Energy, Resources & Utilities (up 5.7 per cent), and Life Sciences & Healthcare (up 4 per cent).
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What TCS said on dividend:
{{/usCountry}}Revenue for the quarter was up 2.24 per cent YoY at ₹62,613 crore from ₹61,237 crore in the corresponding quarter last year. Operating margin for the quarter came at 24.7 per cent. Net margin stood at 19.2 per cent. The company said it saw double-digit growth in Emerging Markets, led by India (up 61.8 per cent YoY). Almost all verticals returned to sequential growth; YoY growth was led by Manufacturing (up 9.4 per cent), Energy, Resources & Utilities (up 5.7 per cent), and Life Sciences & Healthcare (up 4 per cent).
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What TCS said on dividend:
{{/usCountry}}TCS said its board declared an interim dividend of ₹10 per share. The interim dividend would be paid on August 5 to the equity shareholders of the company as on July 20 which is the record date, fixed for the purpose, the company said.