Indian IT major Tata Consultancy Services (TCS) on Wednesday clocked a 14.8 per cent rise in net income to Rs 11,392 crore for the fourth quarter of last fiscal against Rs 9,959 crore in the year-ago period. The country’s largest technology services firm by market value said its revenue rose 16.9 per cent to Rs 59,162 crore during the reporting season from Rs 50,591 crore a year ago.
TCS said its operating margins stood at 24.5 per cent in the fourth quarter against 24.1 per cent a year ago. In a seasonally-weak quarter, analysts had estimated the Tata Group company to report 2.1 percent quarter-on-quarter (QoQ) growth in revenue, while net profit was projected to increase 6.2 percent QoQ in the January-March quarter.
The IT firm’s consolidated revenue from operations came in at Rs 59,162 crore, up 16.9 percent, from Rs 50,591 crore in the year-ago quarter. It stood at Rs 58,229 crore in the December quarter of FY23. TCS has also announced a final dividend of Rs 24 per share.
K Krithivasan, the CEO and MD-designate from mid-March, will formally take over from the incumbent Rajesh Gopinathan from June 1, the company said in a statement.
Rajesh Gopinathan, CEO and MD said,”It is very satisfying to look back at our strong growth in FY23, on top of the mid-teen growth in the prior year. The strength of our order book demonstrates the resilience of demand for our services and gives us visibility for growth in the medium term.”
TCS’ earnings before interest and taxes (EBIT) stood at Rs 14,488 crore with EBIT margin contracting 0.5 per cent YoY to 24.5 per cent. Net margin came in at 19.3 per cent. The revenue growth was driven by the UK (17 per cent QoQ), retail & consumer packaged goods (CPG) (13 per cent QoQ), and life sciences and healthcare (12 QoQ per cent), according to the company.
The order book for the quarter stood at $10 billion with the total FY23 order book TCV (total contract value) coming in at $34 billion.
The company, the largest private sector employer in the country with over 5 lakh payrolls, said it has added a net of 821 employees during the quarter.
Samir Seksaria, chief financial officer, TCS, said, “FY23 was a year of transition, as supply-side challenges abated while pandemic-depressed travel and discretionary spending normalised. We navigated this change well, without slowing down our investments in our people, research and innovation and intellectual property. Our longer-term competitiveness remains intact, giving us industry-leading profitability even as we pursue our growth aspirations.”
Ahead of the earnings announcement on Wednesday, TCS stocks closed at Rs 3,242.10 apiece, up 0.87 per cent on the BSE. The benchmark Sensex, on the other hand, rallied for the eighth consecutive day, rising 235 points.