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Highlights
- Sales over the Year and quarter: The company experienced a substantial growth of 5.44 % in the past year, substantial increase in net sales/revenue by 2.25 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -31.14 %, Marginal decrease of -16.85% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Tata Consultancy Services Limited. Notable increase of 8.86 % in net profit Year to Year, Tata Consultancy Services Limited’s profitability dropped by -3.18 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 9.98 % Year to Year. EPS decreased by -3.17 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 59381 Cr | Rs. 61237 Cr | Rs. 62613 Cr | + 2.25 % | + 5.44 % |
| Expenses | Rs. 44383 Cr | Rs. 44073 Cr | Rs. 45951 Cr | + 4.26 % | + 3.53 % |
| Operating Profit | Rs. 14998 Cr | Rs. 17164 Cr | Rs. 16662 Cr | -2.92 % | + 11.09 % |
| OPM % | 25.26 % | 28.03 % | 26.61 % | -1.42 % | + 1.35 % |
| Other Income | Rs. 1397 Cr | Rs. 1157 Cr | Rs. 962 Cr | -16.85 % | -31.14 % |
| Interest | Rs. 163 Cr | Rs. 226 Cr | Rs. 173 Cr | -23.45 % | + 6.13 % |
| Depreciation | Rs. 1243 Cr | Rs. 1246 Cr | Rs. 1220 Cr | -2.09 % | -1.85 % |
| Profit before tax | Rs. 14989 Cr | Rs. 16849 Cr | Rs. 16231 Cr | -3.67 % | + 8.29 % |
| Tax % | 25.81 % | 25.8 % | 25.42 % | -0.38 % | -0.39 % |
| Net Profit | Rs. 11120 Cr | Rs. 12502 Cr | Rs. 12105 Cr | -3.18 % | + 8.86 % |
| EPS in Rs | Rs. 30.26 | Rs. 34.37 | Rs. 33.28 | -3.17 % | + 9.98 % |
Today, we’re looking at Tata Consultancy Services Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a robust year-over-year sales growth of 5.44 %. However, it did see a marginal increase of 2.25 % from the previous quarter. Expenses ticked up slightly by 4.26 % quarter-on-quarter, aligning with the annual rise of 3.53 %. Operating profit, while up 11.09 % compared to last year, faced a quarter-on-quarter dip of -2.92 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 1.35 %, but a shrinkage of -1.42 % sequentially. Other income fell by -16.85 % compared to the last quarter, despite an annual decline of -31.14 %. Interest expenses dropped significantly by -23.45 % from the previous quarter, yet the year-over-year increase remains at a moderate 6.13 %. Depreciation costs fell by -2.09 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -1.85 %. Profit before tax grew annually by 8.29 % but saw a reduction from the preceding quarter by -3.67 %.
Tax expenses as a percentage of profits decreased slightly by -0.39 % compared to last year, with a more notable quarter-on-quarter decrease of -0.38 %. Net profit rose by 8.86 % year-on-year but witnessed a -3.18 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 9.98 % but a quarterly fall of -3.17 %. In summary, Tata Consultancy Services Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 59381 Cr | Rs. 61237 Cr | Rs. 62613 Cr | + 2.25 % | + 5.44 % |
| Expenses | Rs. 44383 Cr | Rs. 44073 Cr | Rs. 45951 Cr | + 4.26 % | + 3.53 % |
| Operating Profit | Rs. 14998 Cr | Rs. 17164 Cr | Rs. 16662 Cr | -2.92 % | + 11.09 % |
| Net Profit | Rs. 11120 Cr | Rs. 12502 Cr | Rs. 12105 Cr | -3.18 % | + 8.86 % |
| EPS in Rs | Rs. 30.26 | Rs. 34.37 | Rs. 33.28 | -3.17 % | + 9.98 % |
In reviewing Tata Consultancy Services Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 5.44 % year-on-year growth, however, there was a minor increase of 2.25 % from the previous quarter. Expenses rose by 3.53 % compared to the previous year, with a 4.26 % increase quarter-on-quarter. Operating Profit surged by 11.09 % annually, and saw a -2.92 % decrease from the last quarter.
Net Profit showed yearly increase of 8.86 %, and experienced a -3.18 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 9.98 % annually, however dipped by -3.17 % compared to the last quarter. In essence, while Tata Consultancy Services Limited exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
