{"id":13561,"date":"2023-04-14T12:13:36","date_gmt":"2023-04-14T06:43:36","guid":{"rendered":"https:\/\/univest.in\/blogs\/?p=13561"},"modified":"2023-04-14T12:53:02","modified_gmt":"2023-04-14T07:23:02","slug":"results-update-q4fy23-tcs-and-infosys","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/results-update-q4fy23-tcs-and-infosys\/","title":{"rendered":"Results Update Q4FY23- TCS and Infosys"},"content":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; overlay_strength=&#8221;0.3&#8243; gradient_direction=&#8221;left_to_right&#8221; shape_divider_position=&#8221;bottom&#8221; bg_image_animation=&#8221;none&#8221;][vc_column column_padding=&#8221;no-extra-padding&#8221; column_padding_tablet=&#8221;inherit&#8221; column_padding_phone=&#8221;inherit&#8221; column_padding_position=&#8221;all&#8221; column_element_spacing=&#8221;default&#8221; background_color_opacity=&#8221;1&#8243; background_hover_color_opacity=&#8221;1&#8243; column_shadow=&#8221;none&#8221; column_border_radius=&#8221;none&#8221; column_link_target=&#8221;_self&#8221; column_position=&#8221;default&#8221; gradient_direction=&#8221;left_to_right&#8221; overlay_strength=&#8221;0.3&#8243; width=&#8221;1\/1&#8243; tablet_width_inherit=&#8221;default&#8221; tablet_text_alignment=&#8221;default&#8221; phone_text_alignment=&#8221;default&#8221; animation_type=&#8221;default&#8221; bg_image_animation=&#8221;none&#8221; border_type=&#8221;simple&#8221; column_border_width=&#8221;none&#8221; column_border_style=&#8221;solid&#8221;][vc_column_text css=&#8221;.vc_custom_1681456980864{margin-right: 16px !important;margin-left: 16px !important;border-right-width: 10px !important;border-left-width: 10px !important;}&#8221;]<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/results-update-q4fy23-tcs-and-infosys\/#Results_Update_Q4FY23\" title=\"Results Update Q4FY23\">Results Update Q4FY23<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/results-update-q4fy23-tcs-and-infosys\/#TCS_Q4FY23_Results\" title=\"TCS Q4FY23 Results\">TCS Q4FY23 Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/results-update-q4fy23-tcs-and-infosys\/#Management_Speak\" title=\"Management Speak\">Management Speak<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/results-update-q4fy23-tcs-and-infosys\/#Infosys_Q4FY23_Results\" title=\"Infosys Q4FY23 Results\">Infosys Q4FY23 Results<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/results-update-q4fy23-tcs-and-infosys\/#Management_Speak-2\" title=\"Management Speak\">Management Speak<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Results_Update_Q4FY23\"><\/span><b>Results Update Q4FY23<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">With a start to the Q4 earnings season, TCS is the first of the Nifty 50 and the first among the large IT services companies to declare its Q2FY23 results on 12<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> April 2023. This was followed by Infosys declaring its Q4 results on 13<\/span><span style=\"font-weight: 400;\">th<\/span><span style=\"font-weight: 400;\"> April.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"TCS_Q4FY23_Results\"><\/span><b>TCS Q4FY23 Results<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Key Highlights<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidated net profit of Rs 11,392 crore, registering a 14.7% YoY growth from Rs 9,926 crore in Q4FY22.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue from operations grew by 17% YoY to Rs 59,162 crore compared to Rs 50,591 crore in Q4FY22. Sequentially, revenue grew 1.6%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In constant currency (cc) terms, the revenue rose 10.7% YoY.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operating margin in Q2FY23 was 26.66%, lower by 1.3% on a YoY basis.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The order book for the quarter stood at $10 billion with the total FY23 order book TCV (total contract value) coming in at $34 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During FY23, it onboarded over 44,000 freshers and also highest-ever number of experienced professionals.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue growth was driven by the UK (17% QoQ), retail &amp; consumer packaged goods (CPG) (13% QoQ) and life sciences and healthcare (12% QoQ).<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Management_Speak\"><\/span><b>Management Speak<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Chief Executive Officer and Managing Director,\u00a0<\/span><b>Rajesh Gopinathan<\/b><span style=\"font-weight: 400;\"> said, \u201cIt is very satisfying to look back at our strong growth in FY 2023, on top of the mid-teen growth in the prior year. The strength of our order book demonstrates the resilience of demand for our services and gives us visibility for growth in the medium term. Krithi and I are working closely to ensure that the leadership transition over the next few months is smooth and seamless to all our stakeholders and that TCS is well positioned to capture the opportunities ahead.\u201d<\/span><\/p>\n<p><b>Samir Seksaria<\/b><span style=\"font-weight: 400;\">, Chief Financial Officer, TCS said, \u201cFY 23 was a year of transition, as supply-side challenges abated while pandemic-depressed travel and discretionary spending normalised. We navigated this change well, without slowing down our investments in our people, research and innovation and intellectual property. Our longer-term competitiveness remains intact, giving us industry-leading profitability even as we pursue our growth aspirations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, TCS is undergoing a CEO transition, having appointed K Krithivasan as the CEO-designate to succeed Rajesh Gopinathan, who resigned in March this year.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Infosys_Q4FY23_Results\"><\/span><b>Infosys Q4FY23 Results<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Key Highlights<\/b><\/p>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidated Revenue from operations increased 16% YoY to Rs 37,441 crore in Q4FY23.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Consolidated Net profit stood at\u00a0Rs 6,128 crore down by nearly 16% QoQ but up by nearly 6% YoY.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">In constant currency terms, the company&#8217;s revenue growth came in at 3.2% QoQ and 8.8% YoY.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">The company also declared a final dividend of Rs 17 per share for FY23.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Infosys expects revenue growth to be in the range of 4-7% in constant currency for the financial year 2023-24 and operating margins are expected to be in the range of 20-22%.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">It added clients in the $1 million (922 from 912), $10 million (298 from 294) and $100 million (40 from 38) segments on a sequential basis.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">The number of $50 million-plus clients declined to 75 from 79 on a QoQ basis.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Financial services sector revenue fell 1.7 percent YoY. Banking and financial services make for close to 26 percent of the total revenue.<\/span><\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">The manufacturing vertical saw the best growth at 22 percent.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Management_Speak-2\"><\/span><b>Management Speak<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Salil Parekh<\/b><span style=\"font-weight: 400;\">, CEO and MD of Infosys said, \u201cOur strong performance in FY23 is a testimony to the continued focus on digital, cloud and automation capabilities which resonated with our clients. We have launched exciting programs with our clients leveraging generative AI platforms.&#8221;<\/span><\/p>\n<p><b>Nilanjan Roy<\/b><span style=\"font-weight: 400;\">, Chief Financial Officer said, &#8220;Our continued focus on cost optimization and operational efficiencies have helped in achieving operating margins of 21.0% in FY23.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He added, \u201cFree cash generation in Q4, led by robust collections, was strong. Executing on our capital allocation policy, we successfully completed the share buyback and have proposed a final dividend of\u00a0\u20b917.50 for FY23.&#8221;<\/span><\/p>\n<p><strong>ABOUT THE AUTHOR<\/strong><\/p>\n<p><strong>Ketan Sonalkar (SEBI Rgn No INA000011255 )<\/strong><\/p>\n<p>Ketan Sonalkar is a certified SEBI registered investment advisor and head of research at Univest. He is one of the finest financial trainers, with a track record of having trained more than 2000 people in offline and online models. He serves as a consultant advisor to leading fintech and financial data firms. He has over 15 years of working experience in the finance field. He runs Advisory Services for Direct Equities and Personal Finance Transformation.<\/p>\n<p>Note \u2013 This channel is for educational and training purpose only &amp; any stock mentioned here should not be taken as a tip\/recommendation\/advice<\/p>\n<p><em>You may also like: <a href=\"https:\/\/univest.in\/blogs\/why-is-the-rupee-falling\/\">\u00a0<strong class=\"breadcrumb_last\" aria-current=\"page\">Why is the Rupee Falling?<\/strong><\/a><\/em>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row type=&#8221;in_container&#8221; full_screen_row_position=&#8221;middle&#8221; column_margin=&#8221;default&#8221; column_direction=&#8221;default&#8221; column_direction_tablet=&#8221;default&#8221; column_direction_phone=&#8221;default&#8221; scene_position=&#8221;center&#8221; text_color=&#8221;dark&#8221; text_align=&#8221;left&#8221; row_border_radius=&#8221;none&#8221; row_border_radius_applies=&#8221;bg&#8221; overflow=&#8221;visible&#8221; 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