TCS Q4FY24: Net profit surges 12.4% QoQ to Rs 12,434 crore; margin rises to 26%

Tata Consultancy Services (TCS), the IT bellwether, released its Q4 FY24 numbers on Friday, April 12, post-market hours. The company's consolidated net profit inched higher to Rs 12,434 crore from Rs 11,058 crore logged in the previous quarter.

The consolidated revenue at the IT major surged from Rs 60,583 crore in the December-ended quarter to Rs 61,237 crore. The company in its filing said that the company's growth has been led by India markets (+37.9%), followed by UK (+6.2%), and Manufacturing (+9.7%).  Zee Business research desk estimated revenue to come in at Rs 61,800 crore, a tad higher than the reported figure.

The earnings before interest and taxes (EBIT) at the behemoth also logged a growth to Rs 15,918 crore as against the earlier reported operating profitability of Rs 15,155 crore. Nevertheless, the operating metric at the company came in higher than the estimates of Rs 15,450 crore. The operating margin at the company grew to 26 per cent, logging a year-on-year expansion of 150 bps. 1 basis point is one-hundredth of a percentage point.

The order book at the company increased to $1,320 crore, gaining 63 per cent, sequentially. Furthermore, the company in constant currency terms logged a higher growth of 2.2 per cent in contrast to the desk estimates of 2 per cent growth.

The company has declared a final dividend of Rs 28 per share for the FY ending March 31, 2024.

K Krithivasan, Chief Executive Officer and Managing Director, said: “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. 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.” 

The attrition rate at the company also logged an improvement with attrition rate now decreased to 12.5 per cent versus 13.3 per cent sequentially. The headcount at the company has decreased from 6,03,305 in December quarter to 6,01,546, a decline of 1759 sequentially.

The company has also announced hikes for its workforce.“We are pleased to announce the annual increments for our workforce, as we have done consistently every year, with top performers receiving double digit hikes. 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." said Milind Lakkad, Chief HR Officer, TCS.

The management commentary highlighted that the IT major won broad-based deals across industries as well as geographies. Also, there was laid an emphasis that disciplined approach to operations have helped us expand our industry-leading margins