Tcs records strong double-digit growth in the first quarter | Bangalore News

Bengaluru: CDSJune quarter results and commentary, like those from Accenture two weeks ago, underscore strong demand trends. On a constant currency basis, TCS revenue increased 3.5% sequentially and 15.5% year-on-year. In dollar terms, revenue increased 10.2% year-on-year to $6.7 billion in the quarter.
Revenue growth was led by North America and was broad-based across all industry verticals. The retail segment rebounded from pandemic lows with strong year-over-year growth of 25.1% in constant currency.

“It was a quarter of strong and steady performance, continuing our journey from last year and recent quarters. As we review our customer universe and customer discussions, we see consistent demand as evidenced by our pipeline and transaction closings,” said Rajesh, CEO and Managing Director of TCS. Gopinathan. TCS deal bookings (total contract value) were $8.2 billion in the quarter, down 27.4% sequentially and up 1.2% year-on-year. There have been some transactions in the order of $400 billion and more. Growth was driven by cloud, consulting and transaction consolidation.
“Conversations with customers indicate that demand drivers will be the main themes we’ve talked about, primarily the transition to the cloud as well as investments in customer experience and operating model transformation initiatives, both from growth and transformation side than on the cost and optimization side,” Gopinathan added. . Responding to questions about concerns about the recession and its impact on technology spending, Gopinathan reiterated that there was no indication of an immediate slowdown in demand. TCS growth was led by retail and CPG (consumer packaged goods), followed by communication and media, manufacturing and BFSI which grew 25.1%, 19.6% respectively. %, 16.4% and 13.9% year over year in constant currency.
However, the operating margin, at 23.1%, was below Street expectations. This is a sequential decline of 190 basis points and 240 basis points from a year ago, in part due to wage increases. Chief Financial Officer of the SDC Samir Seksaria said the dollar strengthened against most currencies, causing the company to have a 25 basis point positive impact on margins.
Mitul Shah, director of research at Credentials, said: “TCS is likely to be one of the main beneficiaries of the medium-term upward trend in technology spending. We expect TCS to gain market share through vendor consolidation and captive monetization efforts. However, moderating EBIT margins and declining order backlog would reduce the pace of earnings growth going forward and could lead to a downward revision of the valuation multiple. TCS has declared an interim dividend of Rs 8 per share.