TCS logs 9% y-o-y growth in Q4 net profit at ₹12,434 Crore

15 Apr 2024 , 11:24 AM

Tata Consultancy Services (TCS), India’s top software exporter, declared a consolidated net profit of ₹12,434 Crore for the fourth quarter. It was up 9% from ₹11,392 Crore a year earlier.

Revenue from operations rose by 3.5% year on year (YoY) to ₹61,237 Crore. The Board also proposed a final dividend of ₹28 per share.

On a sequential basis, earnings after tax increased by 12% from ₹11,058 Crore in the previous December quarter. Revenues increased by 1% quarter over quarter.

In constant currency terms, TCS increased revenue by 2.2% in the March quarter. The Indian business saw the most increase (38%), followed by the UK (6.2%).

The software company finished the fourth quarter with record transactions at $13.2 Billion, while the FY24 order book TCV (total contract value) reached an all-time high of $42.7 Billion.

“We are thrilled to conclude FY24 on a high note, boasting our highest-ever order book and a remarkable 26% operating margin. This achievement underscores the resilience of our business model and our commitment to execution excellence,” stated K Krithivasan, CEO and MD of TCS.

During the fourth quarter, operating margins increased 150 basis points to 26%, while net margins climbed 100 basis points to 20.3%.

The BFSI segment, which generates the majority of the company’s revenue, declined 3.2%, while the consumer division decreased 0.3% in the March 2024 quarter. The manufacturing industry increased the highest (9.7%) during the reporting year, followed by energy and utilities (7.3%).

During the quarter, the technology, communications, and media industries all saw losses of more than 5%. Geographically, the UK and Latin American areas led the way with growth rates of 6.2% and 9.8%, respectively, over the reporting period.

Attrition in the IT services sector was 12.5% at the end of the March quarter (on a trailing twelve-month basis), down from 13.3% in the previous quarter.

At around 11.17 AM, TCS was trading 0.32% lower at ₹3,988.50 per piece, against the previous closing price of ₹4,001.40 on NSE. The counter touched an intraday high and low of 4,064.20 and ₹3,971, respectively.

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