Tata Consultancy Services (TCS) has reported a 16.8% increase in net profit on a year-on-year (YoY) basis for the quarter ended June 30. Despite a challenging business environment, TCS’s strong growth in total contract value (TCV) deal wins has contributed to its impressive performance.
The consolidated revenue for the quarter reached Rs 59,381 crore, marking a YoY surge of 13%. In constant currency terms, the revenue grew by 7% YoY. In dollar terms, the revenue increased by 4% from the previous quarter to $7,226 million.
However, TCS experienced modest growth of 0.4%, the slowest in the past 12 quarters. Net profit declined by 3% compared to the previous quarter. Among the industries TCS serves, the strongest growth was seen in the life sciences and healthcare sector at 10.1%, followed by manufacturing at 9.4%, BFSI at 3%, retail and CPG at 5.3%, technology and services at 4.4%, and communications and media at 0.5%.
TCS showed promising growth in various markets, with the United Kingdom leading at 16.1% growth, followed by North America at 4.6%, and Continental Europe at 3.4%. In emerging markets, the Middle East and Africa grew by 15.2%, India by 14%, Latin America by 13.5%, and Asia Pacific by 4.7%.
During this quarter, TCS added 523 employees on a net basis, slightly lower than the previous quarter’s 821 employees. The company’s total headcount stood at 6,15,318 as of June 30. Attrition levels dipped to 17.8% on a last-twelve-months basis, down from 20.1% in the previous quarter.
Chief Human Resources Officer Milind Lakkad stated that the company expects attrition to continue trending down and return to its long-term range by the second half of the year. TCS has been slowing down its hiring in recent quarters, with a focus on leveraging its existing capacity. Lakkad also mentioned that 53% of the company’s workforce is currently working from the office three days a week, as part of the company’s initiative to foster its culture.
Despite the challenges posed by the business environment, TCS’s strong financial performance, focus on talent development and retention, and adaptability to changing work dynamics position it well for future growth.
