TCS: Established dominance of valuable company, paying dividends to investors after profits

TCS Q1 Results: Tata Consultancy Services (TCS), the country's most prestigious IT services provider, owned by Ratan Tata and chairman emeritus of Tata Sons, has disclosed its first quarter results (Q1 results) for the financial year 2024-25. Ratan Tata's company posted a net profit of Rs 12,040 crore on an annualized basis in the first quarter. TCS on Thursday said its consolidated net profit rose 8.7 percent year-on-year to Rs 12,040 crore in the first quarter of the current fiscal. However, the Tata Group has expressed some uncertainty about maintaining this pace of growth for the remainder of FY 2024-25. In the April-June quarter of 2024, TCS reported revenue growth of 5.4 percent, while its revenue for the first quarter of fiscal 2024-25 rose 5.4 percent to Rs. In the corresponding period last year, TCS's net profit was Rs 11,074 crore. Compared to the January-March 2024 quarter, TCS's net profit fell by 3.1 percent. TCS CEO skeptical of maintaining growth momentum TCS Chief Executive Officer (CEO) and Managing Director K Kritivasan informed me of a strong start to the new financial year with all-round growth in industries and markets in the first quarter results. When asked about the possibility of sustaining this momentum, Krithivasan said it may be difficult to make any assessment in this regard. He said that we will not say anything clearly about this. It is too early to say whether the pace of growth is sustainable or not. This is due to market conditions in the last quarter. Nothing new can be added based on market sentiment. Kritivasan said TCS's North American revenue decline company will focus on expanding its customer relationships, building new capabilities in emerging technologies and expanding its AI-focused TCS Baseport in France, IoT Lab in the US and fulfillment centers in Latin America, Canada and Europe. We are investing in innovations including From a geographic perspective, TCS's revenue from North America declined by 1.1 percent, due to which its share in the largest market fell to 49.5 percent. Revenue from the Indian market grew by 61.8 percent as state-run telecom company BSNL tries to roll out 4G network. Slight decline in operating margin TCS Chief Financial Officer Sameer Seksaria said TCS achieved a strong operating margin despite the normal impact of annual salary hike in the June quarter. The company's operating margin declined to 24.7 percent in the quarter. Milind Lakkad, Chief Human Resources Officer, TCS, said the company had succeeded in recruiting 5,452 new employees during the last quarter. With this, the total number of employees of the company has increased to about 6.07 lakhs. Also Read: Shares of formal wear maker rise 6,431%, Milind Lakkad says long-term strong profit will give Rs 10 in equity stake Rise on net basis. With a constant focus on employee engagement and development, we have been successful in retaining employees and demonstrating strong business performance. Along with this, TCS declared an interim dividend of Rs 10 per equity share of Rs 1. Describing TCS's results as a bit of a surprise, analysts at domestic brokerage Stockbox said the pace of BSNL-related deals, industry demand trends and success of deals will be monitored in the medium term. Also Read: Gold prices: Gold prices rise for third consecutive day, silver rises by Rs. 100 increased. The post TCS: Valuable company maintains its dominance, pays dividends to investors after profits