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India's leading software exporter Tata Consultancy Services (TCS) on Friday reported a consolidated net profit of Rs 12,434 crore in the fourth quarter. It was up 9% from Rs 11,392 crore a year ago.
Revenue from operations increased by a marginal 3.5% year-on-year (YoY) to Rs 61,237 crore. The Board has also recommended a final dividend of Rs 28 per share.
On a sequential basis, profit after tax jumped 12%, compared with Rs 11,058 crore clocked in the preceding December quarter. Revenues were up 1% quarter-on-quarter (QoQ).
Also Read: TCS announces final dividend of Rs 28 per share
In constant currency terms, TCS clocked a revenue growth of 2.2% in the March quarter. The growth was led by the India business (up 38%), followed by the UK (6.2%).
The software major closed the fourth quarter with record deals worth $13.2 billion and the FY24 order book TCV (total contract value) stood at an all-time high of $42.7 billion.
"We are very pleased ending 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," said K Krithivasan, CEO and MD, TCS.
Operating margins during Q4 expanded 150 basis points to 26%, while net margins improved 100 basis points to 20.3%.
Also Read: TCS reports dip in Q4 hiring, full-year attrition cools to 12.5%
Segment-wise, the BFSI, which brings the most revenue for the company, degrew 3.2%, while the consumer business also fell 0.3% in the quarter ended March 2024. The manufacturing segment rose the most at 9.7% in the reporting period, followed by energy and utilities, which clocked a growth of 7.3%.
The tech and communications and media businesses suffered during the quarter, falling over 5% each.
Geography-wise, the growth was led by the UK and Latin American regions at 6.2% and 9.8%, respectively in the reporting period.
"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," said Ganapathy Subramaniam, COO and ED, TCS.
IT services’ attrition at the end of March quarter stood at 12.5% (on a trailing twelve-month basis), down further from 13.3% in the December quarter.
TCS has announced annual increments for its workforce with top performers receiving double-digit hikes.
"The reduced attrition, 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," said Milind Lakkad, Chief HR Officer.
TCS’ workforce stood at 601,546 at the end of the fourth quarter, of which, 35.6% are women employees.
Ahead of the earnings, TCS shares closed 0.48% higher at Rs 4,003 on the NSE.
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