IT giant Tata Consultancy Services (TCS) will announce its Q1 FY23 results by 5.30 pm on Friday, kick-starting the results season for the information technology sector. As per estimates, TCS will likely register a revenue growth between 3.6 and 4 per cent in constant currency terms (cc) quarter-on-quarter (QoQ). The company's year-on-year (YoY) growth is estimated to be between 11 to 16 per cent for the first quarter of FY23.
According to Motilal Oswal, the IT major's demand commentary could be strong even as margins may have been hit due to wage hikes. They expect the company would be a key beneficiary of long-term structural tailwinds among the technology pack.
Here's how TCS has performed in the last four quarters:
Q4 FY22
For the March 2022 quarter, TCS had reported a 7 per cent rise in consolidated net profit to Rs 9,926 crore. This was against a net profit of Rs 9,246 crore in the year-ago period. The company's consolidated revenue had grown 16 per cent to Rs 50,591 crore in the quarter under review from Rs 43,705 crore a year ago.
Meanwhile, TCS's banking and finance segment revenue had risen to 11.2 per cent at Rs 19,532 crore. This was the first time the IT major had crossed the Rs 50,000-crore revenue mark.
Q3 FY22
For the December 2021 quarter, TCS had posted a net profit of Rs 9,763 crore, up 12.2 per cent year-on-year, while profit for the quarter grew 1.4 per cent on a sequential basis. The Mumbai-headquartered company had reported revenue of Rs 48,885 crore, up 16.3 per cent YoY and 4.3 per cent QoQ in Q3FY22.
The firm's total contract value (TCV) for Q3FY22 was at $7.6 billion compared to $6.8 billion in Q3FY21, TCS said. EBIT for the quarter was at 25 per cent as the margins were impacted due to increased focus on hiring and retention of talent, said the company.
Q2 FY22
For the September 2021 quarter, the IT major's consolidated net profit had risen 6.84 per cent to Rs 9,624 crore on a 3.21 per cent increase in net sales to Rs 46,867 crore on a QoQ basis. On a year-on-year (YoY) basis, TCS had reported a 28.75 per cent increase in net profit, and consolidated sales had risen to 16.77 per cent in Q2 FY22. The company's constant currency revenue had grown 15.5 per cent YoY.
Q1 FY22
For the June 2021 quarter, TCS had reported a 28.5 per cent rise in consolidated net profit at Rs 9,008 crore. The IT giant's consolidated revenue had risen 18 per cent to Rs 45,411 crore in Q1FY22 from Rs 38,322 crore in June 2020.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app