TCS Q1 Results Updates: Net profit rises 9%, declares dividend of ₹10 per share

TCS Q1 Results Live: In Q1, the company disclosed a total contract value of $8.3 billion, marking declines both year-over-year and sequentially. In the previous quarter, TCS had achieved a record high quarterly order book of $13.2 billion.

TCS Q1 Results Live: According to a filing with the stock exchanges, TCS noted that all its major markets have returned to sequential growth. Emerging markets, particularly India, saw a robust double-digit growth, nearly reaching 62% year-over-year.

The company highlighted that nearly all verticals experienced sequential growth, with manufacturing leading year-over-year growth at 9.4%, followed by energy, resources & utilities at 5.7%, and Life Sciences & Healthcare at 4.0%.

TCS Q1 Results Live: “I am delighted to announce the successful completion of our annual increment process. Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense

satisfaction.”

TCS Q1 Results Live: The interim dividend will be paid on Monday, August 5, 2024, to the equity shareholders of the company whose names are recorded in the depositories' records as of Saturday, July 20, 2024, the designated record date.

TCS Q1 Results Live: The attrition rate for IT services over the past twelve months was 12.1%. TCS employees have logged 11 million learning hours and gained 1.2 million competencies.

TCS Q1 Results Live: “In spite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence. We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios and creating long term value for our stakeholders.”

TCS Q1 Results Live: The consolidated operating margin for the reported quarter was 24.7%, reflecting a year-over-year expansion of 1.5%, while the net margin was 19.2%.

TCS Q1 Results Live:  “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 PacePor in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe.”

TCS Q1 Results Live: TCS board has also approved the interim dividend of ₹10 per equity share of ₹1 each of the company, along with the June quarter results.

TCS Q1 Results 2024 Live: The IT behemoth further posted a 5.4 per cent rise in revenue from operations in the June quarter. Revenue from operation in June stood at ₹62,613 crore, as compared to ₹59,381 crore same period last year.

TCS Q1 Results 2024 Live: The IT major has posted a 9 per cent year-on-year (YoY) rise in its net profit to ₹12,040 crore.

TCS Q1 Results 2024 Live: The shares of TCS closed the Thursday's trading session in red ahead of the Q1 results announcement. TCS stock closed flat at ₹3,902 per share, against previous close at ₹3,909 on Wednesday.

TCS Q1 Results 2024 Live: TCS share price traded flat ahead of the announcement of Q1 results today. TCS shares opened higher at ₹3,944.65 apiece on the BSE and hit an intraday high of ₹3,979.90 per share. TCS stock was trading 0.13% higher at ₹3,915.00 apiece.

TCS Q1 Results 2024 Live: Progress in large deal ramp ups and new logo additions to drive Q1 growth (1.4% QoQ CC). However, we expect a decline in margins by 110 bps sequentially due to compensation revision and visa costs, although the quantum of wage hike would be lower than that of last year, Prabhudas Lilladher said.

TCS Q1 Results 2024 Live: Nifty IT valuations had corrected during the course of Q3–Q4FY24. However, with expectations of growth recovery in FY25 and absence of guidance cuts by Accenture in May 2024, Nifty IT is trading at 27.3x one-year forward P/E multiple, which is at a ~32% premium to Nifty 50 (versus average historical [5–10-year period] premium of ~10– 20%), as per ICICI Securities. Nifty IT is trading at 1.2% discount to Nasdaq (lower than the average historical discount of 2%).

TCS Q1 Results 2024 Live: ICICI Securities builds in 1.7% USD and 1.8% CC QoQ revenue growth driven by traction in BFSI, retail (consumer business group) and hi-tech from the deals announced in Q1. it expects EBIT margin to decline by 186 bps QoQ on higher employee costs – wage hike effective 1 April 2024 and double-digit hike for high performers. Management commentary on enterprise discretionary spending, fewer deal announcements in Q1FY25, campus hiring, large deals and turnaround in BFSI will be awaited.

TCS Q1 Results 2024 Live: Emkay Global builds in a 1.6% QoQ USD revenue growth after factoring 40 bps cross-currency headwinds for TCS in Q1. It expects an incremental 0.4% QoQ contribution ($30 million) from the BSNL deal. EBIT margin is likely to decline by ~150 bps QoQ due to wage hikes.

TCS Q1 Results 2024 Live: TCS had reported a net profit of ₹12,434 crore in the fourth quarter of FY24, registering a growth of 9% compared to ₹11,392 crore YoY. Revenue from operations increased slightly by 3.5% YoY to reach ₹61,237 crore. USD revenue was at $7,363 million. EBIT in Q4FY24 was at ₹15,918 crore, while EBIT margin was at 26%. The company had announced an interim dividend of ₹28 per equity share.

TCS Q1 Results 2024 Live: Tier-I IT companies are expected to report revenue growth in the range of -0.5% to +2.0% QoQ in Constant Currency (CC). Revenue of Tier-II players is expected to grow by -1.5% to +5.0% QoQ in CC terms.

TCS Q1 Results 2024 Live: The key things to watch out for in TCS Q1 results today are: 

i) CY24 IT budget, possibility of growth uptick, and discretionary spending recovery in H2CY24

ii) Demand trends in key verticals like BFSI, Retail, Hi Tech, Manufacturing, and Communications

iii) Deal intake and deal pipeline (including AI and Gen AI)

iv) Likely trajectory of revenue booking in the BSNL deal and its implications on margin

v) Pricing environment considering macro uncertainties and deal mix shift toward cost takeouts

vi) Margin outlook

vii) Management commentary on demand environment across geographies

viii) Hiring plan including freshers

TCS Q1 Results 2024 Live: TCS is expected to post revenue growth of 1.5% QoQ to ₹62,157 crore in Q1. USD revenue is expected to rise 3.0% to $7,444 million, according to Nomura. It expects the BSNL project to ramp up gradually over the year. EBIT margins are estimated to contract 150 bps QoQ with full quarter impact of annual wage hikes. Key things to watch out for include commentary on cost takeout projects, banking vertical and outlook on client discretionary spend.

TCS Q1 Results 2024 Live: Axis Securities expects TCS to report revenue growth of 1.6% QoQ aided by deal ramp up, longer working days. It estimates margins to contract by 107 bps because of wage hike. The brokerage expects deal wins to be in the range of $9 billion - $11 billion in the quarter. Management commentary on new deal ramp up and visibility going ahead and vertical outlook such as BFSI, Hitech, Manufacturing are key to watch.

TCS Q1 Results 2024 Live: IT services sector is anticipated to exhibit moderate growth in Q1FY25, primarily due to weaker discretionary spending, driven by uncertainties in macroeconomic conditions and upcoming elections in the US. Industries such as BFSI, Manufacturing, Telecom, Retail, and Hi-tech are expected to show some recovery, with new deal ramp-ups contributing to a growth momentum, Axis Securities said. 

The brokerage expects the IT services sector to report revenue growth in the range of -1% to 2% QoQ in the USD terms. In rupee terms, it expects the sector to deliver QoQ revenue growth of -1% to 2.4%. Margins are likely to witness some expansions on account of easing supply-side constraints and lower onsite expenses. 

TCS Q1 Results 2024 Live: TCS’ operational performance in Q1FY24 is expected to be weak on a sequential basis, according to Phillip Capital. The company is expected to report Earnings before Interest and Taxes (EBIT), or operating profit, at ₹15,379 crore in Q1, a drop of 3.4% from ₹15,918 crore in the March quarter. EBIT margin is likely to decline by 130 bps to 24.7% from 26%, QoQ, on account of wage hikes.

TCS Q1 Results 2024 Live: TCS’ net profit in the April-June 2024 quarter is estimated to fall 3.5% to ₹11,997 crore from ₹12,434 crore in the March 2024 quarter. On a year-on-year (YoY) basis, TCS net profit is expected to rise 8.3% from ₹11,074 crore in the June quarter last year.

TCS Q1 Results 2024 Live: TCS Q1 Results 2024 Live: TCS is expected to report 1.8% QoQ revenue growth in CC to ₹62,323 crore in Q1FY25 helped by BSNL deal and longer working days. USD revenue is likely to rise 1.5% QoQ to $7,473 million. Ramp-up of deals won earlier, recovery in the FSI and retail verticals, and momentum from the BSNL deal could aid growth.

TCS Q1 Results 2024 Live: TCS share price opened higher on Thursday ahead of the announcement of Q1 results later during the day. TCS shares opened nearly a percent higher at ₹3,944.65 apiece on the BSE as against its previous close of ₹3,909.90 per share. TCS share price extended gains and rose over 1.6% to ₹3,972.60 apiece.

TCS Q1 Results 2024 Live: TCS earnings for the quarter ended June 2024 are likely to be softer, with a muted sequential growth in revenue, but net profit and EBIT margin are likely to see a drop. Market participants will focus on whether the company sees green shoots in the demand environment, especially with the high likelihood of the US Federal Reserve beginning rate cuts and monetary policy easing in September.

Tata Consultancy Services (TCS), the largest software services exporter in India, will announce its earnings for the first quarter of FY25 today. TCS Q1 results are scheduled to be released after market hours on July 11.