TCS Q4FY24 Highlights: Amid global macro uncertainty, IT major posts some impressive numbers; take a look

TCS Q4 FY24: Tata Consultancy Services (TCS) officially kicked off the fourth quarter earnings season for India Inc (Q4 FY24) on Friday, April 12. The results, which were announced post-market hours, were mostly in line with analysts' estimates. The final dividend of Rs 28 per share, record deal wins, and a 100 basis point increase in operating margin were some of the major highlights.

Commenting on the results, 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 their core priorities with TCS’ portfolio of offerings, innovation capabilities, and thought leadership.”

Here are the key takeaways from the IT major's Q4 results.

Revenue: In rupee terms, TCS reported a consolidated revenue of Rs 61,237 crore, up 1 per cent against Rs 60,583 crore logged in the previous quarter. In US dollar terms, the figure rose to $736 crore from $728.1 crore in the December 2023 quarter—a rise of 1 per cent. 

EBIT: The K Krithivasan-led company reported a 5 per cent QoQ increase in EBIT, or earnings before interest and tax, to Rs 15,918 crore as against Rs 15,155 crore registered in the previous quarter. 

Operating margin: The margin saw a rise of 100 basis points (bps) during the quarter under review from 25 per cent to 26 per cent. 

Reported PAT: The company's Reported Profit After Tax (PAT) came in at Rs 12,434 crore, up 12.4 per cent QoQ while adjusted PAT rose 3.5 per cent QoQ from Rs 12,016 crore logged in the previous quarter. It must be noted that there was a charge of Rs 958 crore towards the settlement of the legal claim in the last quarter.

Deal wins: The company reported a record Q4 TCV (total contract value) of $13.2 billion. For the full year, the order book hit an all-time high of $42.7 billion.

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Attrition and total headcount: The attrition rate declined to 12.5 per cent during the quarter under review from 13.3 per cent in the previous quarter. The total headcount stood at 6,01,546 against 6,03,305, a decline of 1,759 sequentially.

Milind Lakkad, Chief HR Officer, said: “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 rate of 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 the morale of our associates."

ALSO READ | TCS dividend 2024: IT major announces Rs 28/share payout

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Shares of the company ended at Rs 4,000.30, up 0.45 per cent on the BSE.