Tata Consultancy Services Q1 Results FY2023: Net profit at Rs. 3257 crore for Q1FY23
On 8th July 2022, Tata Consultancy Services announced its quarterly results for the last quarter of FY2022.
- The Revenue for Q1FY23 stood at Rs. 52,758 crores, with a growth of 16.2% YoY and 3.92% QoQ
- Net Income stood at Rs. 9,478 crores, with a growth of 5.2% YoY and Net Margin at 18%
- Net Cash from Operations reported at Rs. 10,810 crores i.e. 114.1% of Net Income
- The net profit was reported at Rs. 3257 crores with a QoQ decline of 4.34% and a YoY growth of 3.99%.
TCS Q1FY23 Result Review
Industries: Growth was led by Retail and CPG with revenue growth of 25.1%, Communications & Media with revenue growth of 19.6%, Manufacturing vertical with a growth of 16.4% and Technology & Services with a growth of 16.4%. BFSI grew at 13.9% while Life Sciences and Healthcare grew at 11.9%
Markets: Among major markets, North America led with a growth of 19.1%; Continental Europe grew at 12.1% and the UK grew at 12.6%. In emerging markets, India grew at 20.8%, Asia Pacific grew at 6.2%, Latin America grew by 21.6%, and the Middle East & Africa grew by 3.2%.
Services: There was strong, broad-based demand across the different services, led by Cloud, Consulting & Service Integration, Cognitive Business Operations, and Enterprise Application Services
Consulting & Services Integration: Saw strong growth led by finance and shared services, supply chain, next-gen enterprise transformation and cloud strategy and transformation.
- Cloud Platform Services: Continues to experience strong growth as clients actively invest in hybrid cloud strategies and pursue multi-horizon cloud transformation initiatives. Infrastructure, application and data modernization, operating model transformations, and business transformations drove growth. Hyperscaler partnerships continue to strengthen and expand from ongoing joint GTM initiatives.
- Digital Transformation Services: Growth in Q1 was led by cloud ERP modernization using SAP S/4 HANA, Salesforce and digital process management services. TCS’ industry solutions powered by TCS Crystallus continued to resonate strongly with clients. TCS Interactive saw strong demand for design-led digital experience services across B2B, B2C and D2C initiatives and digital marketing. In cybersecurity, demand was driven by managed services in security support, upgrades and monitoring & operations, and areas like IAM modernization, Fraud Prevention & Digital Forensics. Cyber Defense Suite continues to gain adoption.
- Cognitive Business Operations: Saw strong demand in areas like data center and network services, customer experience management, HR operations, supply chain, digital workplace, and verticalized operations. Trends around vendor consolidation and integrated operations deals continue to strengthen. TCS’ contextual knowledge and assets like Cognix, MFDM, and ignio are helping it gain share in this segment
Commenting on the results Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “We are starting the new fiscal year on a strong note, with all-round 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.”
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DisclaimerInvestment/Trading is subject to market risk, past performance doesn’t guarantee future performance. The risk of trading/investment loss in securities markets can be substantial. Also, the above report is compiled from data available on public platforms.
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