TCS Q4 results: Tata Consultancy Services Ltd said its consolidated sales for the quarter grew 3.5 per cent YoY to Rs 61,237 crore from Rs 59,162 crore in the same quarter last year. Analysts were expecting a 3-4 per cent increase in sales.
TCS Q4 results highlights: Profit up 9%; Rs 28 per share dividend announced
Tata Consultancy Services Ltd (TCS), the second most valued firm on Dalal Street, on Friday reported a 9.14 per cent year-on-year (YoY) rise in consolidated net profit at Rs 12,434 crore for the March quarter compared with Rs 11,392 crore in the same quarter last year. Marketmen, tracking the IT sector, were expecting the largest software exporter to log a 5-6 per cent year-on-year (YoY) jump in net profit.
TCS said its consolidated sales for the quarter grew 3.5 per cent YoY to Rs 61,237 crore from Rs 59,162 crore in the same quarter last year. Analysts were expecting a 3-4 per cent increase in sales.
Ebit margin came in at 24.6 per cent, up 150 basis points YoY. Analysts were seeing 30-50 basis points expansion in sequential margins. Deal wins at $13.2 billion were higher than with analyst estimates of $8-10 billion for the quarter.
TCS final dividend
TCS declared a final dividend of Rs 28 per share for the financial year 2023-24. Along with Rs 45 per share dividend announced earlier, the total TCS dividend for FY24 stood at Rs 73 per share. The TCS board approved the dividend proposal while announcing the IT firm’s March quarter results. The proposal will now be up for shareholder approval at TCS’ upcoming 29th Annual General Meeting (AGM).
TCS Q4 growth drivers
In terms of geographies, the growth was led by India (37.9 per cent), the UK (up 6.2 per cent), and manufacturing (up 9.7 per cent). Chief Operating Officer and Executive Director, N Ganapathy Subramaniam, said TCS’ Q4 performance was robust, with broad based deal wins across industries and geographies. “Our products and platforms business sparkled with the mega deal win at Aviva and emerging markets had another stellar growth quarter demonstrating the power of TCS’ diversified portfolio,” he said.
TCS attrition.
TCS said its headcount stood at 6,01,546 at FY24 end. Chief HR Officer, Milind Lakkad, said: “We are pleased to announce the annual increments for our workforce, as we have done consistently every year, with top performers receiving double digit hikes. The reduced attrition at 12.5 per cent, enthusiastic response to our campus hiring, increased customer visits and employees returning to the office have resulted in great vibrancy in our delivery centres and elevated morale of our associates.”
Management commentary
Chief Executive Officer and Managing Director, K Krithivasan, said: “We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26 per cent operating margin, validating the robustness of our business model and execution excellence. In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership.”On FY24, Chief Financial Officer Samir Seksaria said: “In FY 2024, our disciplined approach to operations have helped us expand our industry-leading margins. In a challenging environment, we persisted with our long-term investments in workforce reskilling, research and innovation. We will continue to drive efficiencies and competitiveness to capture opportunities for growth with profitability.”
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