India’s largest IT services firm Tata Consultancy Services (TCS) on Friday reported a 5.2 per cent year-on-year rise in consolidated net profit to Rs 9,478 crore for the first quarter ended June 30.
The consolidated revenue from operations increased 16.2 per cent year-on-year to Rs 52,758 crore in the first quarter of FY23. TCS has declared an interim dividend of Rs 8 per equity share of Re 1 each.
The company has added 14,136 employees in the April to June quarter with a total workforce of 6,06,331 employees globally and women account for 35.5 percent of TCS workforce, the company said in a statement.
Software giant kicking off the corporate earnings season — said its attrition rate further rose to 19.7 percent in the April to June quarter of the 2022-2023 financial year. In the previous quarter, TCS saw an attrition rate of 17.4 percent.
TCS Chief Executive Officer and Managing Director Rajesh Gopinathan 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.”
TCS remains confident in the resilience of technology spending and the secular tailwinds driving growth, he said in a statement.
Its Chief Financial Officer Samir Seksaria 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 normalising travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory,” Seksaria said.
Milind Lakkad, Chief HR Officer, said, following the annual compensation review, TCS employees received salary increases of 5 to 8 percent with top performers getting even bigger hikes.
“Our empowering, performance-driven work culture is helping us attract local talent across all our key markets. Continued hiring momentum resulted in a milestone quarter, with the employee strength crossing the 600,000 mark,” he added.
