In a filing dated 11th October 2023, the company announced Strong Earnings Growth and Large Order Book in Q2 and the company Board announced Buyback Valued at `17,000 crore at `4,150 per share. Highlights for the quarter ending September 30th 2023 are as follows:
Tata Consultancy Services revenue grew 7.9% YoY to Rs. 59,692 crore, Constant Currency revenue growth was +2.8% YoY. Operating Margin at 24.3%; an expansion of 0.3% YoY. Net Income at Rs. 11,342 crore, increasing 8.7% YoY with its Net Margin at 19%.
Net Cash from Operations at was at Rs. 11,823 crore i.e., 104.2% of Net Income. LTM IT Services attrition rate stands at 14.9%. Dividend per share is declared at Rs. 9.00 per share. Record date for the same is 19th October 2023, and its Payment date is 7th November 2023.
Growth was led by the Energy, Resources and Utilities vertical which grew 14.8%, Manufacturing which grew 5.8% and Life Sciences and Healthcare which grew 5%. The Consumer Business Group grew 1%, BFSI degrew 0.5%, Communications & Media grew -2.1% and Technology & Services grew -2.2%.
Among major markets, the United Kingdom led with 10.7% growth; North America grew 0.1% and Continental Europe grew 1.3%. In emerging markets, Middle East & Africa grew 15.9%, Latin America grew 13.1%, Asia Pacific grew 4.1% and India grew 3.9%.
K Krithivasan, Chief Executive Officer and Managing Director, said: “Our clients continue to entrust us with critical new technology initiatives, and large programs to digitally transform their IT and business operating models. Strong deal momentum delivered us a very large order book in Q2 – our second highest TCV ever in a quarter, and good pipeline. The resilience of demand for our services, our clients’ willingness to commit to long tenure programs and their continued appetite for experimentation with Gen AI and other new technologies give us confidence in our longer-term growth prospects.”
Samir Seksaria, Chief Financial Officer, said: “Our focus on improving employee utilization, while driving productivity improvement and cost efficiency across the organization, has helped us expand our operating margin to 24.3%. We will continue to push the growth, efficiency and innovation levers to further improve our profitability. In keeping with our shareholder friendly capital allocation policy, the Board has recommended a share buyback to the tune of `17,000 crore at `4,150 per share.”
Written by Sandeep R
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