TCS Q4 profit rises 15% to Rs 11,392 cr

Mumbai, April 12

Software major Tata Consultancy Services (TCS) on Wednesday opened the earnings season for the March quarter with a 14.8% growth in net income to Rs 11,392 crore against Rs 9,926 crore in the year-ago period.

The largest software company by revenue and market value said its revenue rose 16.9% to Rs 59,162 crore in the March 2023 quarter from Rs 50,591 crore a year ago.

For the full year, the Tata Group flagship reported a 17.6% year-on-year rise in revenue to Rs 2,25,458 crore and earned a net income of Rs 42,147 crore, which was 10% more than it booked in the 12 trailing months.

The company, which abruptly announced the departure of the incumbent chief executive and managing director Rajesh Gopinathan last month — four years before his second five-year term to end, said chief executive-designate K Krithivasan will assume charge from June 1, which is a full one-month ahead of the previous announcement.

The company saw improvement in its operating margins at 24.5%, up from 24.1% a year ago, and net margin increased to 19.3% in the quarter against 18.7%.

TCS — the cash cow for the Tata Group with more than 85% of the group’s net income — said its free cash flow stood at Rs 41,440 crore, which is 104.1% of the net income, and declared a final dividend of Rs 24 per share. This will take the annual payout to Rs 45,602 crore.

TCS has added a net of 22,600 employees during the year, of which 821 were in the reporting period. This has taken the total number of its payrolls to 6,14,795 from 150 nationalities and women constituting 35.7% of the workforce.

During the reporting period and through the year, cloud and data continued to generate huge demand both internally from a talent perspective and externally from a solutions point of view, said its chief operating officer N Ganapathy Subramaniam. — PTI

Revenue up 17%

• The company said its revenue rose 16.9% to Rs 59,162 crore in the March 2023 quarter from Rs 50,591 crore a year ago
• For the full year, the Tata Group flagship reported a 17.6% year-on-year rise in revenue to Rs 2,25,458 crore