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Tata Consultancy Services Ltd. (TCS) reported fourth-quarter net profit grew 9.1% year-on-year to ₹12,434 crore for the quarter ended March.
Revenue increased 3.5% to ₹61,237 crore. Operating margin at 26% saw an expansion of 150 basis points (bps) while net margin expanded 100 bps to 20.3%, the company said. Growth was led by India (+37.9%), UK (+6.2%), and Manufacturing (+9.7%). The board proposed a final dividend of ₹28 per share.
For the full year, net profit rose 10.5% to ₹46,585 crore while revenue climbed 6.8% to ₹2,40,893 crore. The company announced a wage hike for its more than six lakh employees in the range of 4.5% to 7%. Top performers secured double-digit pay rise. The company plans to hire about 40,000 freshers in FY25.
K Krithivasan, Chief Executive Officer and Managing Director, said “This has been a quarter of strong deal wins execution for us. New growth markets like India, Latin America, Middle East and Africa contributed to strong growth.” “We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence,” he said.
“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,” he added saying North America and Europe de-grew 2.3% and 2% respectively reflecting market uncertainties in major markets.
N. Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: “Our Q4 performance is 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.” It was Mr. Subramaniam’s last press conference as the company’s COO as he would retire in May this year.
The company has decided to distribute his various roles among the top management and this the COO post would be abolished from May onwards.
Samir Seksaria, Chief Financial Officer, 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,” he said.
Milind Lakkad, Chief HR Officer, said “ The reduced attrition at 12.5%, 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.”
