In rupee terms, TCS reported revenue of ₹72,275 crore, which is 2.2% higher compared to ₹70,698 crore that the company had reported in the March quarter. The figure is also marginally higher than the CNBC-TV18 poll projection of ₹71,847 crore.
In constant currency terms, TCS reported revenue growth of 0.4%. The expectations ranged from a negative 0.1% to a positive 0.4%. Therefore, the constant currency growth is at the higher end of the range.
Earnings Before Interest and Tax (EBIT) declined by 3% during the June quarter to ₹17,317 crore. A CNBC-TV18 poll had projected the figure to be at ₹17,348 crore, while the company had reported an EBIT of ₹17,870 crore in the previous quarter.
EBIT margin stood at 24% from 25.3% last year, a contraction of 130 basis points. Margins were supposed to contract by 120 basis points sequentially due to the impact of wage hikes.
TCS also reported its annualized AI revenue of $2.6 billion, which was higher by 13.6% on a sequential basis.
At the end of the quarter, TCS bagged total contract value (TCV) of $9.5 billion. During the quarter the company also signed a net new AI-led business transformation deals, including a $800 million mega deal with SKF, along with a multi-million dollar strategic partnership with ServiceNow as well. Another multi-million dollar deal with a Europe-based Fortune Global 50 company as well.
TCS has also declared an interim dividend of ₹12 per share along with its results and the record date for that has been fixed as July 15. The dividend payout will be credited to shareholders on or before July 31.
Shares of TCS had opened lower on concerns surrounding the H-1B Visa investigations in the US, but recovered sharply by the close and ended above the flat line at ₹2,059. The stock is down 35% so far this year.
