TCS beats street estimates with 16.2% Q1 revenue growth; margins disappoint

Net profit misses estimate as salary hikes impacted margins by 150 bps

The results of Tata Consultancy Services (TCS) for the first quarter of FY23, declared on Friday, beat street estimates on the top line and continued to keep pace with the growth momentum it delivered in FY22.

TCS’ net profit grew 5.2 per cent year-on-year and 2.5 per cent sequentially to Rs 9,478 crore in Q1FY23, but missed the estimate of Rs 9,850 crore, according to the Bloomberg data. Revenue for the quarter came in at Rs 52,758 crore, up 16.2 per cent YoY and 4.28 per cent sequentially.

While the company’s Q1 revenue was ahead of the Bloomberg estimates of Rs 52,486