TCS Share surge on reporting 17% rise in profit YoY

On Wednesday, Tata Consultancy Services (TCS) Ltd reported a 16.84% year-on-year rise in its consolidated net profit for the fiscal’s first quarter ended June (Q1FY24) to Rs 11,074 crore. The company had reported a profit of Rs 9,478 crore in the year-ago period. Sequentially, the consolidated net profit was down 2.8%. The IT company’s consolidated revenue from operations stood at Rs 59,381 crores during the quarter ended June from Rs 52,758 crore in Q1FY23. Sequentially, up 0.4% from Rs 59,162 crore in Q4FY23. 

The board has also approved an interim dividend payout of Rs 9 per share. Sequentially, the topline rose a mere 0.4%, making this the slowest growth in 12 quarters for the country’s largest software exporter. The profit declined nearly 3% from the March quarter. In constant currency terms, TCS revenue grew about 7% YoY. The company’s order book stood at USD 10.2 billion, with a book-to-bill ratio of 1.4x. The operating margin in the quarter came in at 23.2%, down a sharp 130 basis points from the previous quarter. 

TCS is an IT services, consulting, and business solutions organization that has been partnering with many of the world’s largest businesses. TCS offers a consulting-led, cognitive-powered, integrated portfolio of IT, business & technology services, and engineering. This is delivered through its unique location-independent agile delivery model, recognized as a benchmark of excellence in software development. 

The shares are currently trading at Rs 3,326.65, up by 66.45 points or 2.04% from its previous closing of Rs 3,260.20 on the BSE. The scrip opened at Rs 3,276 and has touched a high and low of Rs 3,330 and Rs 3,273.05 respectively. So far 60,908 shares were traded on the counter.  

The BSE group ‘A’ stock of face value of Rs 1 has touched a 52-week high of Rs 3,575 and a 52-week low of Rs 2,926. The current market cap of the company is Rs 12,18,445.81 crore. The promoters and Institutions held 72.30% and 27.70% stake in the company respectively.  

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.