TCS Q4 results: Profit rises 12.5% QoQ to ₹12,502 crore, revenue up 1.5%, announces final dividend of ₹28 per share

Tata Consultancy Services (TCS) Q4 result updates: Indian IT major Tata Consultancy Services (TCS) reported a 12.6% quarter-on-quarter (QoQ) rise in Q4 net profit to ₹12,502 crore. Its consolidated revenue stood at ₹62,394 crore, up 1.5% QoQ. TCS Q4 results were better than market estimates.

For the full year of FY24, TCS reported a 8.9% year-on-year (YoY) rise in net profit to ₹46,099 crore and a 7.1% YoY increase in its consolidated revenue to ₹2,45,315 crore.

Order book and EBIT margins

For the fourth quarter, TCS order book stood at $13.2 billion, while total contract value for FY24 stood at all-time high of $42.7 billion. The earnings before interest and taxes or EBIT margin was 26%, against 25% a quarter ago.

From a regional perspective, in FY24 the India region led with 37.9% growth; Continental Europe declined by 2% and North America de-grew 2.3%. In emerging markets, Middle East & Africa grew 10.7%, Latin America grew 9.8%, and Asia Pacific grew 5.2%.

From segmental perspective, Manufacturing & Energy & utilities segment saw highest growth of 9.7% & 7.3% for FY24, while BFSI, technology and communication saw decline in the business in the range of 3% to 5.5% for FY24.

TCS announces final dividend for shareholders

The company also approved a final dividend of ₹28 per share, which will be paid post 29th annual general meeting.

Attrition rate dips further

The total employee count at TCS as of March 31 stood at 601,546. The IT services’ attrition was further down at 12.5% for the last twelve months, from 13.3% a quarter.

Also read: Q4 earnings season: TCS, Infosys, Bajaj Auto among 88 companies to announce results in April

Management commentary

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

In addition, N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said, “Our Q4 performance is robust, with broad based deal wins across industries and geographies. Our products and platforms business sparkled with the mega deal win at Aviva and emerging markets had another stellar growth quarter demonstrating the power of TCS’ diversified portfolio.”

TCS share price reaction

Ahead of Q4 result announcement, TCS shares closed 0.48% higher, with a day high of ₹4,013 per share. As the results were announced after market hours, the exact impact will be seen on 15 April.