BENGALURU: The country's largest IT services company Tata Consultancy Services (TCS) on Wednesday reported a 16.8% y-o-y increase in its net profit for the quarter ended June 30, 2023, at Rs 11,074 crore. Its revenue for the first quarter stood at Rs 59,381 crore, a 12.6% increase compared to Rs 52,758 crore in the same quarter last year.
However, sequentially its net profit was down 2.8%. The company's net profit stood at Rs 11,392 crore in the quarter ended March 2023.
K Krithivasan, CEO and MD, TCS said, “It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services,driven by the emergence of newer technologies."
"We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities," he added.
TCS operating margin for the June quarter stood at 23.2%, an expansion of 0.1% y-o-y. The company has added 523 people in the first quarter of this fiscal year.
Its attrition rate stood at 17.8%. Samir Seksaria, CFO, TCS said, “We have gone ahead and rolled out our annual salary increase with effect from April 1. Our operating margin of 23.2% reflects the 200-bps impact of this hike, offset through improved efficiencies. At the same time, we continue to make the investments needed to power our future growth, including expansion of our delivery and research infrastructure.”
TCS also said that its Return to Office initiative is picking pace, with 55% of the workforce already in office thrice a week. "We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle," said Milind Lakkad, Chief HR Officer, TCS.