TCS Q2 Results FY2023, Revenue up by 18%

On 10th October 2022 India’s one of the leading IT companies, Tata Consultancy Services (TCS) announced its quarterly results for the second quarter of FY2023.

Key Highlights:

Q2FY23 Performance updates:

- The company reported revenue at Rs. 55,309 crores, with a growth of 18% YoY 
- Constant Currency revenue reported a growth of 15.4% YoY 
- Order Book was at $8.1 billion and Book to Bill ratio was at 1.2 
- Operating Margin was reported at 24% with a contraction of 1.6% YoY 
- Net Income stood at Rs. 10,431 crores, with growth at 8.4% YoY, and Net Margin stood at 18.9% 
- Net Cash from Operations was at Rs. 10,675 crore i.e. 102.3% of Net Income 
- The company reported PAT at Rs. 10465 crores with a growth of 8%.
- Net headcount addition of 9,840 with workforce strength of 616,171 
- The company announced a Dividend of Rs.8 per share
- Growth was led by Retail and CPG (22.9%), Communications & Media (+18.7%), and Technology & Services (+15.9%). Manufacturing as well as Life Sciences & Healthcare verticals grew +14.5%, while BFSI grew +13.1%.

Tata Consultancy Services Q2FY23 Video:

Geographical market growth:

- The North American market reported revenue growth of 17.6%
- The Continental Europe market grew by 14.1% and the UK market grew by 14.8%. 
- In emerging markets, the revenue of the Indian market grew by 16.7%, Latin America’s revenue grew by 19.0%, the Middle East & Africa’s revenue grew by 8.2% and the Asia Pacific grew by 7.0%.

Growth in Services:

- Consulting and Services Integration: Growth for the quarter was led by M&A, cloud strategy and transformation, and enterprise agility consulting services.
- Cloud Platform Services:  Demand for cloud modernization services continued across all hyperscaler cloud services to drive scalability, reliability, and business transformations in all industry verticals. A hybrid cloud strategy continues to be the preferred approach for most enterprises, as it offers the right balance across the IT and business spectrum.
- Digital Transformation Services: Cloud ERP, customer experience, connected services, and managed security are the themes that drove the growth in Q2. Demand for cybersecurity services continued to be robust as clients focus on protecting critical infrastructure; there is greater adoption of TCS Cyber Defence Suite for operations, monitoring, GRC, and reporting. There was strong demand for cloud ERP transformation
- Cognitive Business Operations: There were multiple large deals wins for the digital transformation of operations in data center and network, digital workspace, and customer experience.

Other Business Highlights:

- Sainsbury’s, a leading supermarket retailer in the UK, has selected TCS as its transformation partner to build business agility and flexibility. 
- Catalent, Inc. (Catalent Pharma Solutions), an S&P 500® company, has selected TCS to transform to a next-gen operating model led by the Machine First approach for its global infrastructure services. 
- Selected by PostNord, a European postal services company, as the strategic partner to transform and manage critical business applications. 
- Selected by Bane Nor, a European railway infrastructure operator, and provider, to transform their Identity and Access Management (IAM) landscape with TCS Cyber Defense Suite.
- Selected by Northern Powergrid, a large UK-based power distribution company, as the partner for Smart Utility Solutions. 
- Selected by Prorail, the Dutch Government organization responsible for the management of the national rail infrastructure, to manage and transform its core traffic management portfolio of applications. 
- A leading oil and gas MNC, has renewed its partnership with TCS for business transformation and generating value through digital technologies. 
- TAP Air Portugal (TAP), the flag carrier of Portugal has selected TCS as a strategic partner to accelerate its digital transformation roadmap and drive innovation as part of its post-pandemic business strategy. 
- Chosen by a North America-based air carrier as the core transformation partner on a multi-year Cloud Migration/ Modernization program spanning applications across technology and core business functions. 
- Selected by a leading European pharmaceuticals manufacturer to provide quality and compliance services globally, and drive digital transformation.
- Chosen by a UK supermarket chain to drive Finance and HR process transformation. TCS will leverage  
- Selected by a UK-based semiconductor technology company as the strategic partner to transform its enterprise IT operating model.
- Selected by a European healthcare equipment manufacturer for building a digital core leveraging a leading ERP solution on a hyperscaler platform to enable a standardized scalable business model for its carved-out entity.
- Boots, a leading health and beauty retailer, and pharmacy chain selects TCS to reimagine its supplier funding – to automate, redefine, simplify and standardize supplier promotion funding processes.
- A large UK bank has selected TCS for developing an enterprise data fabric architecture that enables advanced analytics at scale.

Commenting on the results, Rajesh Gopinathan, Chief Executive Officer and Managing Director said: “Demand for our services continues to be very strong. We registered strong, profitable growth across all our industry verticals and in all our major markets. Our order book is holding up well, with a healthy mix of growth and transformation initiatives, cloud migration, and outsourcing engagements. As clients prepare for a more challenging environment ahead, technologies like a cloud that have been embraced now have to be fully leveraged to realize the promised value. TCS has the combination of contextual knowledge, technology expertise, and execution rigor to deliver on this imperative.”