Risks
4 risks
Risk Intelligence
Prolonged demand softness in North America and BFSI
View Risks →Tata Consultancy Services Ltd — Q1 FY24
TCS reported a steady Q1 FY24 with revenue of INR 59,300 crore (+12.6% YoY) and operating margin of 23.2%, despite absorbing annual wage hikes.
neutral
high
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
TCS reported a steady Q1 FY24 with revenue of INR 59,300 crore (+12.6% YoY) and operating margin of 23.2%, despite absorbing annual wage hikes. Net profit stood at INR 11,074 crore. The order book reached $10.2 billion, up 24% YoY, driven by strong deal wins in North America and BFSI. However, revenue growth was flat sequentially due to client reprioritization and delays in discretionary projects. Management noted near-term uncertainty but remains confident in long-term technology demand, citing a robust pipeline and early GenAI engagements (50+ POCs). Attrition improved to 17.8% from 20.1% in Q4. Key risks include prolonged macro uncertainty, slower conversion of large deals, and potential pricing pressure in a soft demand environment. The company aspires to return to its 26%-28% margin band but refrained from providing a timeline.
टीसीएस ने पहली तिमाही में 59,300 करोड़ रुपये की कमाई की, जो पिछले साल से 12.6% ज्यादा है। कंपनी का मुनाफा 11,074 करोड़ रुपये रहा। कर्मचारियों की तनख्वाह बढ़ने के बावजूद कंपनी ने 23.2% का मुनाफा कमाया। नए ऑर्डर 10.2 अरब डॉलर के मिले, जो पिछले साल से 24% ज्यादा हैं। अमेरिका और बैंकिंग क्षेत्र से अच्छे ऑर्डर आए। लेकिन पिछली तिमाही के मुकाबले कमाई नहीं बढ़ी, क्योंकि ग्राहकों ने खर्च कम किया और कुछ प्रोजेक्ट टाल दिए। कंपनी का कहना है कि फिलहाल अनिश्चितता है, लेकिन लंबे समय में टेक्नोलॉजी की मांग बनी रहेगी। कर्मचारियों के छोड़ने की दर 17.8% हो गई है, जो पहले 20.1% थी। कंपनी 26-28% मुनाफा कमाने की कोशिश करेगी, लेकिन इसकी कोई तारीख नहीं बताई।
Risks4 trackedTranscriptfull text
Research workspace
Focused Modules
Transcript
Full text
Call Transcript
Full transcript text is available on this route.
Read Transcript →Quarter Snapshot
Order Book (TCV)
$10.2B
+24% YoY
Total contract value for Q1 FY24, driven by strong wins in North America and BFSI.
Attrition (LTM IT)
17.8%
-230bps QoQ
Attrition declined from 20.1% in Q4, indicating improved employee retention.
GenAI POCs & Pipeline
50+ POCs, 100+ pipeline
New metric
Early-stage GenAI engagements; management expects material revenue in a couple of quarters.
Customers >$100M
60
+1 YoY
Number of clients generating over $100M in annual revenue, reflecting deepening relationships.
Fast read
Guidance and risk preview
Management reiterated the long-term margin aspiration but declined to provide a timeline for achievement, citing macro uncertainty.
Revenue growth in key markets remains subdued due to client reprioritization and uncertainty; no clear timeline for recovery.
View Risks →