Earnings: TCS Q1 profit climbs 30% but falls short of expectations

Information technology giant Tata Consultancy Services (NSE: TCS) Thursday reported double-digit growth in first-quarter revenues and net profit, reflecting the stable demand conditions. However, earnings missed estimates.

Revenues of the Mumbai-headquartered tech firm climbed 18% year-over-year to INR 45,411 crore in the first quarter. Consequently, net income advanced to INR 9,008 crore from INR 7,008 crore last year. On a per-share basis, earnings rose 30% to INR 24.35, but came in below the forecast. At 25.5%, operating margin was up 2%.

TCS Q1 FY22 Earnings Concall

While the second wave of the pandemic impacted sequential growth in India, International markets witnessed positive performance. During the quarter, the company signed some major partnerships involving business entities across the globe. Its employee count crossed the 500,000 mark and reached 509,058, marking the biggest quarterly net addition ever.

“Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic of the opportunities in our core markets and verticals. We are well positioned and operating diligently to participate in them aggressively,” said Rajesh Gopinathan, chief executive officer of TCS.

Shares of TCS closed Thursday’s session at INR 3,258.50, down 0.5%. They have gained 11% since the beginning of the year.