Revenue growth was led by North America and was broadly based across all sectors of the industry. The retail segment bounced back from pandemic lows with a strong year-on-year growth of 25.1% in constant currency.
“It has been a quarter of a year and a strong and stable performance continuing our journey over the past few quarters. As we look at our customer universe and customer discussions, we see a steady increase in our pipeline and deal closures. The demand is visible,” said TCS CEO and MD Rajesh gopinathan, TCS’ deal bookings (total contract value) were $8.2 billion in the quarter, up 27.4% sequentially and 1.2% year-over-year. There were some deals in the range of over $400 billion. Growth was led by cloud, consulting and consolidation of deals.
Gopinathan said, “Customer interactions indicate that demand drivers will be the key topics we are talking about, primarily cloud transition as well as investment, growth and transformation in customer experience and operating model transformation initiatives. side and both cost and optimization side,” Gopinathan said. , Responding to questions about slowdown concerns and its impact on tech spending, Gopinathan reiterated that there is no sign of demand slowing down immediately. TCS’s growth was led by retail and CPG (consumer packaged goods), followed by communications and media, manufacturing and BFSI rising 25.1%, 19.6%, 16.4% and 13.9% year-on-year in constant currency, respectively.
However, operating margin, at 23.1%, was lower than expected. It was down 190 basis points sequentially and 240 basis points lower than a year ago, partly due to wage increases. TCS CFO Sameer Sexaria The dollar strengthened against most currencies, which had a positive 25 basis points impact on the company’s margins.
Mitul Shah, Head of Research Reliance Securities“TCS is likely to be one of the major beneficiaries of the medium-term uptrend in technology spending. We expect TCS to gain market share on the strength of vendor consolidation and captive monetization efforts. However, moderation in EBIT margins and lower order book will further dampen earnings growth momentum and may lead to a downside correction in the valuation multiple. TCS has declared an interim dividend of Rs.8 per share.