Tata Consultancy Services reported revenue up 16.2%, workforce surpasses 600,000


Revenue at IT service giant Tata Consultancy Services Ltd. rose 16.2% in its fiscal first quarter ended June 30. The increase in constant currency was 15.5%. TCS had announced earnings on Friday.

The Mumbai, India-based firm also reported its workforce surpassed the 600,000 level during the quarter to total 606,331, a net addition of 14,136.

“We are starting the new fiscal year on a strong note, with all-round growth and strong deal wins across all our segments,” CEO and Managing Director Rajesh Gopinathan said. “Pipeline velocity and deal closures continue to be strong, but we remain vigilant given the macro-level uncertainties.”

(Indian rupees millions) Q1 ended June 30, 2022 Q1 ended June 30, 2021 % change % change constant currency Q1 ended June 30, 2022 (US millions)
Revenue        527,580    454,110 16.2% 15.5%        6,690
Gross margin        202,690    183,310 10.6%          2,570
Gross margin percentage 38.4% 40.4%      
Net income           94,780      90,080 5.2%          1,202

Chief HR Officer Milind Lakkad noted employees received salary increases of 5% to 8% with top performers getting more.

TCS noted revenue in its North America market rose 19.1%.

Revenue from continental Europe rose 12.1% while UK revenue grew 12.6%. In TCS’ emerging markets segment, Indian revenue rose 20.8%, Asia Pacific revenue rose 6.2%, Latin American revenue rose 21.6% and Middle East and Africa revenue rose 3.2%.

TCS noted it gradually accelerated its return-to-office program in the first quarter. Approximately 20% of its workforce now works from an office.

Share price and market cap

Shares in TCS closed down 4.64% today to 3,113.80 Indian rupees (US$39.23), they were 2.97% above their 52-week low, according to FT.com. The company had a market cap of 11.95 trillion Indian rupees (US$150.56 billion).