From growth to talent to sustainability: Everything you need to know about TCS Q1 FY23 results
The financial year 2023 is off to a good start for Tata Consultancy Services (TCS), which recorded steady growth in the first quarter. Here are the top takeaways from the results.
Good news for shareholders
TCS announced an interim dividend of Rs 8 per equity share this quarter. The record date for this is July 16 and the payment date is August 3.
“We would like to inform you that at the board meeting held today (on Friday), the directors have declared an interim dividend of Rs 8 per equity share of Rs 1 each of the company," TCS said in its BSE filing.
In good news for the shareholders, the earnings per share have also increased. In the June 2022 quarter, the earnings per share were up to Rs 25.9 from Rs 24.35 a year ago.
Commitment to a Greener Future
TCS remains committed to reducing its impact on the environment. Three of its major geographies- North America, Europe and APAC- have achieved net-zero emission targets.
The goal is to achieve Net Zero emissions by 2030, and a 70% reduction in scope 1 and scope 2 emissions, by 2025 based on a 2016 baseline.
In the last six years, the IT major has been able to reduce its absolute carbon footprint by 66%. Almost 50% of the electricity usage of TCS is sourced from renewable resources.
“We have signed our commitment to SBTi version 5 standards during the quarter and are making steady progress towards our net-zero journey with tremendous alignment to this initiative across our associates,” said N Ganapathy Subramaniam (NGS), Chief Operating Officer, TCS.
Close to 100,000 TCS employees back to office
As the world gradually returns to normal after the Covid-19 pandemic, TCS, too, resumes physical engagements. Almost 20% of TCS employees or close to 100,000 TCSers are back in offices. This is significantly higher than the 5% essential staff at the peak of the pandemic. In-person meetings have resumed, as have client visits to TCS campuses worldwide.
Rajesh Gopinathan, Chief Executive Officer, TCS, said that the company remains committed to the 25x25 model and will roll it out in a phase-wise manner. However, that would require employees to first come back to the office.
$100 million Client Grows Longer
The business grew steadily across all geographies for TCS, with North America driving the growth. In a testament to the growth story, TCS added nine more clients to its $100 million list.
These are clients that gave TCS orders above $100 million. The total list of $100 million clients has now grown to 67. The number of $50m clients has also significantly increased from 105 to 124 in the quarter.
Talent ecosystem grows bigger
A year ago, TCS hit a new HR milestone with the total headcount crossing the 500,000 mark. This quarter, the employee count has surpassed the 600,000 mark, which is a new high.
The demand for talent continues to grow globally. In this quarter, TCS added over 14,000 new employees, taking the total headcount to 606,331. This is a new HR milestone for TCS.
“Our ability to attract the right talent is second to none,” said NGS.
The number of women employees has also grown to 215,014 in this quarter, representing 42% at the junior level, 31% at the middle level and 13.3% at the senior level.