TCS Q1 Results: Top 5 positives from management commentary

By Priyanka Deshpande

CNBC-TV18.com

Published July 12 2024

IT major Tata Consultancy Services (TCS) on Thursday July 11, reported its Q1 results. Take a look at the top 5 positives from the TCS management commentary.

In constant currency terms, TCS reported a sequential revenue growth of 2.2%, surpassing the CNBC-TV18 poll expectation of 1.5%.

1. Revenue and margins beat estimate

EBIT margin narrowed by 130 basis points to 24.7% from 26% last quarter, slightly above the CNBC-TV18 estimate of 24.5%.

TCS added 5,452 employees in Q1, marking the first positive net hiring in three quarters and the highest in seven quarters.

2. Hiring turns positive

Stressed sectors like BFSI and Hi-tech returned to growth after a couple of quarters of de-growth.

3. Growth returns in stressed sectors

TCS management reiterated FY25 to be better than FY24.

4. Expect FY25 to be better than FY24

The AI and Generative AI pipeline surged to $1.5 billion versus $900 million.

5. Artificial intelligence (AI) pipeline grows