TCS Q4 Result: IT Firm Reports 9% Surge in Net Profit
TCS Q4 Result: While the company's net profit exceeded analysts' expectations, it achieved only single-digit growth in both profit and revenue, closely aligning with the projected estimates
TCS Q4 Result: Tata Consultancy Services (TCS) announced on Friday that the Firm recorded a net profit of Rs 12,434 crore in the fourth quarter of the financial year 2023-24, a 9.15 per cent increase from Rs 11,392 crore reported in the corresponding period of the previous year. Additionally, revenue for the March quarter reached Rs 61,237 crore, reflecting a 3.5 per cent growth compared to Rs 59,162 crore in the same quarter last year.
While the company's net profit exceeded analysts' expectations, it achieved only single-digit growth in both profit and revenue, closely aligning with the projected estimates.
In constant currency terms, TCS recorded a revenue growth of 2.2 per cent in the March quarter. The significant growth was led by the Indian business, which experienced a substantial increase of 38 per cent, followed by the UK, with a growth of 6.2 per cent. The IT sector giant wrapped up the fourth quarter with groundbreaking deals accounting for a total of $13.2 billion, while the total contract value (TCV) of orders for FY24 soared to an unprecedented high of $42.7 billion.
During the fourth quarter, TCS achieved an operating margin of 26 per cent, representing a year-on-year expansion of 150 basis points (bps). Additionally, its net margin expanded by 100 bps to 20.3 per cent. The board of the company has proposed a final dividend of Rs 28 per share for the fiscal year 2024.
Speaking on the TCS Q4 results, K Krithivasan, CEO and MD, 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."
"Further, we would like to inform you that at the Board Meeting held today, the Directors have recommended a Final Dividend of Rs 28 per Equity Share of Re 1 each of the Company which shall be paid/dispatched on the fourth day from the conclusion of the 29th Annual General Meeting, subject to approval of the shareholders of the Company," TCS said in an exchange filing.
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