TCS Q4 Profit Up 9%, Books Record Orders; Revenue Growth Muted

12 Apr 2024 , 08:25 PM

Tata Consultancy Services (TCS) reported a 9% increase in consolidated net profit for the fourth quarter of FY24, reaching ₹12,434 Crore attributable to shareholders, compared to ₹11,392 Crore in the year-ago period.

The IT major disclosed a 3.5% growth in revenue, amounting to ₹61,237 Crore for the three months ending March 31, 2024, in an exchange filing on April 12. For the entire fiscal year of FY24, revenue witnessed a 6.8% year-on-year increase to ₹240,893 Crore, with a net profit of ₹46,585 Crore. The operating margin for the year stood at 24.6%.

However, revenue from North America, comprising half of the total revenue, experienced a 2.3% decline year-on-year. The revenue from banking, financial services, and insurance clients, TCS’s largest vertical, decreased by 3.2%.

Despite these challenges, TCS secured a record $13.2 Billion worth of orders in the quarter, including a significant 15-year deal with UK insurer Aviva, an existing client.

The TCS board also approved a final dividend of ₹28 per share.

K Krithivasan, Chief Executive Officer and Managing Director, expressed satisfaction with the strong closure of Q4 and FY24, highlighting the highest-ever order book and a 26% operating margin. He emphasized the company’s commitment to assisting customers in executing their core priorities with TCS’ portfolio of offerings, innovation capabilities, and thought leadership.

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, applauded the robust Q4 performance, with broad-based deal wins across industries and geographies. He noted the success of the products and platforms business, particularly the mega deal win at Aviva, and the stellar growth in emerging markets.

Milind Lakkad, Chief HR Officer, announced annual increments for the workforce, ensuring top performers receive double-digit hikes. He cited reduced attrition at 12.5%, enthusiastic responses to campus hiring, increased customer visits, and employees returning to the office as factors contributing to vibrant delivery centers and elevated morale among associates.

TCS share price closed at ₹4003.80 per share on BSE, marking a 0.48% increase from the previous day’s closing.