TCS Q2FY23 Results

With a start to the Q2 earnings season, TCS is the first of the Nifty 50 and also the first among the large IT services companies to declare its Q2FY23 results.

Key Highlights

• Consolidated net profit of Rs 10,465 crore, registering an 8.41% YoY growth from Rs 9,653 crore in Q2FY22
• Revenue from operations grew by 18.01% YoY to Rs 55,309 crore compared to Rs 46,867 crore in Q2FY22. Sequentially, revenue grew 4.83%
• In CC (Constant Currency) terms, revenue growth was 15.4% YoY
• Operating margin in Q2FY23 was 24%, lower by 1.6% on a YoY basis
• The company’s order book for Q2FY23 stood at $8.1 billion

 

Management Speak

Speaking on the Q2FY23 results, the CEO and MD, Rajesh Gopinathan said “We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration and outsourcing engagements.”

Details of segment performance

The performance in this quarter was driven growth across key segments and geographies.

By Segments

Retail and CPG : 22.9%

Communications and Media : 18.7%

Technology and Services : 15.9%

Manufacturing : 14.5%

By geographies

North America : 17.6%

Continental Europe : 14.1%

UK : 14.8%

India : 16.7%

Latin America : 19%

TCS hired 9,840 new employees during the quarter taking the total workforce strength to 6,16,171. It said women’s share in the workforce was 35.7%.

TCS also announced an interim dividend of Rs 8.00 per share

TCS has delivered results that are better than analyst expectations and the stock is expected to recover from its recent lows post the results.

 

ABOUT THE AUTHOR

Ketan Sonalkar (SEBI Rgn No INA000011255

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.

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