TCS reported a 9% YoY growth in net profit

12 Jul 2024 , 10:52 AM

Tata Consultancy Services (TCS) announced a 9% year-on-year increase in its June quarter net profit of ₹12,040 Crore (profit attributable to the company’s shareholders), compared to ₹11,120 Crore in the same quarter previous year. However, consolidated profit for the period was ₹12,105 Crore.

The company’s board has also recommended a ₹10 dividend per share.

The company’s income from operations was ₹62,613 Crore, up 5.4% from ₹59,381 Crore in the same period last year.

The interim dividend will be paid on Monday, August 5, 2024, to equity shareholders of the company whose names appear in the depositories’ records as of Saturday, July 20, 2024, the record date.

On a sequential basis, the PAT was down by more than 3% from the ₹12,502 Crore reported by the company in Q4FY24.

The combined operating margin for the reporting quarter was 24.7%, up 1.5% year on year, with a net margin of 19.2%.

K Krithivasan, Chief Executive Officer and Managing Director of TCS, commented on the results, saying, “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 strengthen our client connections, develop new skills in emerging technologies, and invest in innovation, including a new AI-focused TCS PacePort in France, an IoT lab in the United States, and the expansion of our delivery centres in Latin America, Canada, and Europe.”

TCS claimed that all of its key markets returned to sequential growth, with very high double-digit growth’ in emerging countries, topped by India at over 62% YoY.

According to the corporate filing, almost all verticals returned to sequential growth, with manufacturing (+9.4%), energy, resources, and utilities (+5.7%), and Life Sciences & Healthcare (+4.0%) leading the YoY growth.

The earnings were disclosed after market hours, and the stock closed at ₹3,902 on the NSE, down ₹7.15, or 0.18%.

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