TCS Q4 result: Revenue up 4%, profit rises 9% YoY; top 5 highlights from March quarter scorecard

TCS Q4 result: Tata Consultancy Services (TCS) reported broadly in-line March quarter (Q4) earnings on Friday, April 12. The company's revenue for Q4FY24 remained almost flat on a quarter-on-quarter (QoQ) basis and its profit rose about 4 per cent sequentially, in line with market expectations.

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The company said it saw the highest-ever order book in Q4FY24 despite global macro uncertainty.

“We are very pleased to close Q4 and FY24 on a strong note with the highest-ever order book and a 26 per cent 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,” K Krithivasan, Chief Executive Officer and Managing Director of TCS, said.

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director of the company 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.”

Meanwhile, the company's board recommended a final dividend of ₹28 per equity share for the face value of Re 1 each.

Also Read: TCS Dividend: Board recommends final dividend of ₹28/equity share; check details

Let's take a look at five top highlights of TCS' Q4FY24 scorecard:

1. The key numbers

TCS reported consolidated revenue from operations of ₹61,237 crore for the fourth quarter of FY24. This was up 3.5 per cent year-on-year (YoY) and 1.1 per cent quarter-on-quarter (QoQ). Revenue in constant currency (CC) terms rose 2.2 per cent YoY.

Its consolidated net profit for the quarter under review stood at ₹12,434 crore, up 9.1 per cent YoY and 12.4 per cent QoQ.

The company's operating margin in Q4 saw an increase of 150 bps YoY at 26 per cent while the net margin saw an expansion of 100 bps YoY at 20.3 per cent.

Also Read: TCS Q4 Results: Company reports net profit at ₹12,434 crore, revenue at ₹61,237 crore

2. Domain performance

In CC terms, with a growth of 26 per cent YoY 'regional markets & others' emerged at the top among the domains. The energy, resources and utilities domain also saw a growth of 7.3 per cent YoY during Q4FY24.

The manufacturing domain saw a healthy growth of 9.7 per cent YoY while life sciences & healthcare grew 1.7 per cent.

However, BFSI saw a degrowth of 3.2 per cent, the communication & media domain shrank by 5.5 per cent and the technology & services segment saw a degrowth of 5.6 per cent YoY during the quarter.

3. Key markets

Barring North America, which saw a degrowth of 2.3 per cent YoY in Q4, and Continental Europe, which shrank 2 per cent YoY in CC terms, all key markets saw growth in Q4FY24. The UK market saw a growth of 6.2 per cent YoY in CC terms in Q4FY24.

The Indian market saw a strong growth of 37.9 per cent while the MEA market saw a growth of 10.7 per cent YoY in CC terms.

4. Human resources

TCS’ workforce stood at 6,01,546 as on March 31, 2024, according to the company's BSE filing. The employee base is very diverse, with 35.6 per cent women and with 152 nationalities, the company said.

TCS said IT services’ attrition was at 12.5 per cent for the last twelve months.

“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 per cent, enthusiastic response to our campus hiring, increased customer visits and employees returning to the office has resulted in great vibrancy in our delivery centres and elevated morale of our associates," said Milind Lakkad, Chief HR Officer of the company.

5. Research and innovation

TCS said as on March 31, 2024, it had applied for 8,040 patents, including 188 applied during the quarter, and has been granted 3,919 patents including 461 granted during the quarter.

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