TCS Q4 profit surges 9% to ₹12,434 cr; announces ₹28 per share dividend

IT bellwether Tata Consultancies Services (TCS) has reported a consolidated net profit of ₹12,434 crore in the January-March quarter 2023-24, up 9% from ₹11,392 crore a year ago. The company's revenue came in at ₹61,327 crore, a marginal 3.5% year-on-year growth (YoY), TCS says via a stock exchange filing today.

TCS has said its Q4 growth was led by India, where the business surged 37.9%, the UK (+6.2%), and the manufacturing industry (+9.7%). The company's operating margin for the quarter surged 26%, with a YoY expansion of 150 bps, while the net margin saw a 20.3% expansion, with a YoY expansion of 100 bps.

TCS' net profit for the full fiscal year was recorded at ₹46,585 crore, up 10.5% YoY, while the full-year revenue came in at ₹240,893 crore, up 6.8% YoY.

The company's FY24 order book as per the total commercial value came in at an all-time high at $42.7 billion, including Q4 TCV at $13.2 billion. For the fiscal year FY24, the company's revenue was recorded at ₹240,893 crore, up 6.8%.

By verticals, TCS' growth was led by energy, resources and utilities at 12.6%, manufacturing at 7.3%, and life sciences & healthcare at 4.8%.

TCS has also announced the final dividend per share at ₹28 for the fourth quarter of FY24.

K Krithivasan, chief executive officer and managing director, says TCS closed Q4 and FY24 on a strong note, with the highest-ever order book and a 26% operating margin. "In an environment of global macro uncertainty, we are staying close to our customers and helping them execute their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership.”

CFO Samir Seksaria says in FY 2024, TCS expanded its margins. "We will continue to drive efficiencies and competitiveness to capture opportunities for growth with profitability.”

In services, TCS says in a challenging macro environment, clients are prioritising initiatives that reduce cost, increase business agility, and improve security posture and resilience. "Win themes across key deals involved cloud migration and modernisation, GenAI, enterprise application services, identity and access management, connected devices, digital workplace services, network services and vendor consolidation. AI, cloud, enterprise solutions, IOT&DE and cyber security led the growth this quarter."

In its full-year highlights, TCS says 62 clients were added in the $100 million plus band, up 2 YoY, while 139 were added in the $50 million band, up 6 YoY. TCS' FY24 headcount was 6,01,546 comprising 152 nationalities and 35.6% women. The company's IT services attrition was recorded at 12.5% in FY24. In talent development, TCS says 5 million competencies were acquired in the fiscal year, while the number of contextual masters was at 73,000. The company's free cash flow for the quarter stood at ₹44,282 crore and shareholder payout was recorded at ₹46,223 crore in the form of dividends and buybacks.