BENGALURU: IT services company Tata Consultancy Services (TCS) on Friday reported a 5% increase in net profit at Rs 9,478 crore for the first quarter ended June 30, 2022,compared to Rs 9,008 crore in the same quarter last year.
The company's revenue from operations stood at Rs 52,758 crore, a 16% increase in the first quarter compared to Rs 45, 411 crore in the year-ago period.
The TCS operating margin stood at 23.1%, a contraction of 2.4% Y-o-Y. The company has declared a dividend of Rs 8.
Rajesh Gopinathan, CEO and MD, TCS said, "We are starting the new fiscal year on a strong note, with all-round growth and strong deal wins across all our segments. Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties."
He added that the company's new organisation structure has settled in nicely, getting the company closer to its clients and making TCS nimbler in a dynamic environment.
"Looking ahead, we remain confident in the resilience of technology spending and the secular tailwinds driving our growth," Gopinathan added.
The IT company is also bringing its employees back to centres, as it gradually accelerated its return to office program in the first quarter, with about 20% of the workforce now working from office.
Samir Seksaria, Chief Financial Officer, said, "It has been a challenging quarter from a cost management perspective. Our Q1 operating margin of 23.1% reflects the impact of our annual salary increase, the elevated cost of managing the talent churn and gradually normalising travel expenses. However, our longer-term cost structures and relative competitiveness remain unchanged, and position us well to continue on our profitable growth trajectory."
TCS employees received salary increases of 5% to 8%, with top performers getting even bigger hikes. Its employee strength crossed the 6 lakh mark and attrition rate stood at 19.7% on the last twelve months basis. In the first quarter alone, the company has hired over 14,000 people.
The IT services company's growth was led by Retail and CPG (25.1%), Communications & Media (19.6%) and Manufacturing vertical (16.4%).
Shares of TCS on Friday closed at Rs 3,264.85, a decrease of 0.67% compared to its previous close on the BSE.