TCS Results: IT major reports major growth in order pipeline and expansion of existing contracts

TCS Q4FY23 Results: Indian information technology (IT) behemoth Tata Consultancy Services (TCS) announced its financial results for the fourth and final quarter of FY2023 on Wednesday, and highlighted several projects won and new orders in the pipeline. The Tata group entity — which is India's second largest company by market value — reported a 14.8 per cent year-on-year rise in net income to Rs 11,392 crore for the fourth quarter of the last fiscal year.

TCS, the country's largest software exporter by market value, said its revenue rose 16.9 per cent to Rs 59,162 crore compared with the year-ago period. Its operating margin — a key measure of profitability — improved to 24.5 per cent in Q4 from 24.1 per cent in the year-ago period.

Also Read: TCS Q4 Results LIVE: Tata group IT major kicks off earnings season; Q4 profit up 5%, TCS board declares dividend

TCS said it has enhanced its partnership with SAS on its Cloud-native services, won the contract of IHG Hotels & Resorts to drive the company's enterprise process automation, got selected by North American utilities company ENMAX Corporation to modernise its billing and customer care processes, and was engaged by aviation giant Bombardier as a partner for its IT and digital transformation.

The IT giant also highlighted a multi-year contract it had won from Singapore Airlines (SIA) for application maintenance and support. TCS also said it was chosen by Bayer as a partner to drive its strategic program. 

Also Read: TCS posts 5% QoQ rise in net profit at Rs 11,392 crore; announces dividend of Rs 24

TCS Results: Order Pipeline

Regarding the new orders won and expansion of existing contracts, TCS said in its exchange filing:

• TCS has expanded its decade-long partnership with SAS as they continue to transform their business under SAS-FORWARD initiative until 2028. TCS will work with SAS to continue simplifying the landscape by adopting cloud native services and enabling faster time to market. TCS will leverage its industryleading practices to drive a culture of empowered teams and continuous innovation, helping deliver superior customer experience.

• Selected by IHG Hotels & Resorts, one of the world’s leading hotel companies, to drive enterprise process automation across Finance, Travel Agent Commission, Revenue Compliance & Audit, Revenue Services, Sales, and HR. The program aims to digitize and automate legacy processes to drive efficiencies and cost optimization across the enterprise.

• Selected by ENMAX Corporation, a North American utilities company, to modernize their billing and customer care processes. TCS will implement their digital core on a leading cloud ERP leveraging TCS ConvertCore, including ERP and Cloud platform partners. This will improve the user experience, provide a step-change in system resiliency and set a foundational stage for their digital transformation.

Selected by an American energy company to enable next gen IT operations and seamless carve out of their clean energy arm with zero disruption. TCS will drive the transformation with MFDM™ powered solutions, ignio™ AIOps, digital workplace services and Cognix™. This will improve productivity and enhance user experience.

• Selected by Bombardier, a global leader in aviation, as the principal strategic partner for their IT and digital transformation that aims to enhance agility. TCS will deploy a unique integrated lifecycle management system on a leading ERP platform. The new state-of-the-art landscape will propel our client's IT operating plans, enabling innovation and maximizing leverage of AI/ML, data and cloud services.

• Selected by a North American energy company, to improve their overall cyber security posture following a recent acquisition. TCS will leverage its Cyber Defense Suite, cyber security tools, engineering services, and Identity & Access Management capabilities to enhance cyber coverage and uplift security, threat detection & response.

• Further strengthening on the long-standing partnership with Singapore Airlines (SIA) of more than two decades, TCS has been awarded a multi-year contract by SIA for application maintenance and support with the aim to harness the multiplier effect of AI/ML for improved efficiencies. This will aid in supporting SIA’s strong digital foundation for enhanced customer experience and more efficient operations.

• Selected by an American data communications and telecom equipment provider, to enable a futureready operating model with focus on service reliability, business KPI improvements, customer experience and innovation. TCS will positively impact the complete value chain by accelerating cloud adoption leveraging TCS Crystallus™, enabling autonomous workflows & managing the complex technology landscape. This will help the client amplify cross track synergies.

• TCS has expanded its strategic partnership with a large European pharmaceutical company, in the areas of research & development, medicine & regulatory affairs to provide domain & business consultancy, validation & testing and business support services with enhanced ownership for the applications portfolio. TCS will streamline the application lifecycle management at scale enabling customers to focus on core business growth.

• TCS has been selected as the strategic partner for a large insurance company to transform its mission critical systems across multiple lines of business and evolve its operating model to take advantage of the cloud. Through this transformation, the insurer will improve its speed, innovation, business agility and its ability to innovate and increase market share. 
 
• TCS has entered into an agreement with a large global reinsurer for cloud-based Infrastructure transformation. TCS will be responsible for centralizing all cloud consumption, standardizing the operating process and bringing efficiency in usage. TCS will implement service catalogue-based automation using TCS Cloud Exponence™, industry leading FinOps cost management and budget control procedures and MFDM leveraging TCS Cognix™, OneEngine to improve Operational agility, technical debt reduction and cloud value realization.

• Selected by a leading American beverages firm, as the strategic partner to transform their supply chain processes on a leading ERP solution. TCS will design an end-to-end solution covering process and governance for a greenfield implementation to simplify, standardize and maximize automation. 

• Selected by a leading German retailer, to support their strategic infrastructure transformation and migration of their global ERP landscape on to a leading hyperscaler cloud platform. This will significantly

• The global enterprise Bayer has chosen TCS as a partner to drive its strategic program (#CORE), that aims to deliver a seamless ONE Bayar experience for its customers, employees and partners. It is a multi-year, Business-led and IT-enabled global program of Bayer that brings all its divisions (Crop Science, Pharmaceuticals and Consumer Health) together to drive end-to-end transformation of business processes and systems.

• TCS has been selected by a global fashion retailer, as the strategic partner to accelerate their AI/Data journey. This includes decommissioning more than 10 legacy platforms, creating a single new modern environment and building a scalable data foundation as the new enterprise data backbone.