For the quarter that ended in March, Tata Consultancy Services Ltd. (TCS) announced fourth-quarter net profit that increased 9.1% year over year to ₹12,434 crore.
TCS Performance Highlights
The amount of revenue rose 3.5% to ₹61,237 crore. According to the company, the net margin increased 100 basis points (bps) to 20.3%, while the operating margin increased 150 bps to 26%. India (+37.9%), the UK (+6.2%), and manufacturing (+9.7%) led the growth. A final dividend proposal of ₹28 per share was made by the board.
Over the entire year, revenue increased 6.8% to ₹2,40,893 crore, while net profit increased 10.5% to ₹46,585 crore. For its over six lakh workers, the corporation announced a pay increase of 4.5% to 7%. High achievers received double-digit pay increases. In FY25, the company intends to hire roughly 40,000 new employees.
The MD Comments
The Managing Director and Chief Executive Officer, K Krithivasan, stated, “We have had excellent deal wins execution this quarter. Strong expansion was aided by emerging markets such as India, Latin America, the Middle East, and Africa. “With the largest order book ever and a 26% operating margin, we are thrilled to close Q4 and FY24 on a strong note, validating the strength of our business model and execution excellence,” he stated.
“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 in an environment of global macro uncertainty,” he continued, adding that North America and Europe had respective declines of 2.3% and 2% in growth, reflecting market uncertainties in key markets.
“Our Q4 performance is robust, with broad-based deal wins across industries and geographies,” stated N. Ganapathy Subramaniam, Chief Operating Officer and Executive Director. Our platforms and products division shone with the massive deal that we closed with Aviva, and our developing markets division had yet another impressive growth quarter, highlighting the strength of TCS’ diverse portfolio. Since Mr. Subramaniam will be retiring in May of this year, it was his final news conference as the company’s COO.
TCS Outlook And Future Prospects
As a result of the company’s decision to divide up his numerous responsibilities among the top management, the position of COO will no longer exist as of May.
“In FY 2024, our disciplined approach to operations has helped us expand our industry-leading margins,” stated Chief Financial Officer Samir Seksaria. We persevered in making long-term investments in personnel reskilling, research, and innovation despite difficult circumstances.
“We’ll keep pushing for efficiency and competitiveness to seize growth and profitability opportunities,” he declared.
“Great vibrancy in our delivery centers and elevated morale of our associates have resulted from reduced attrition at 12.5%, enthusiastic response to our campus hiring, increased customer visits, and employees returning to the office,” stated Milind Lakkad, Chief HR Officer.
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