In a latest update, the Indian IT major, Tata Consultancy Services (TCS) has reported a 14.8 percent year-on-year (YoY) increase in consolidated net profit at Rs 11,392 crore for the quarter ended March 31, 2023.
Rise In Q4 Profit
India’s biggest IT firm has earlier reported a profit of Rs 10,846 crore in the December 2022 quarter.
It appears that it’s yearly revenue growth beat expectations with profit being below expectations.
At the same time, the Quarterly growth came in shorter on both accounts.
The analysts had estimated the Tata Group company to report 2.1 percent quarter-on-quarter (QoQ) growth in revenue considering a seasonally-weak quarter.
Similarly, the net profit was projected to increase 6.2 percent QoQ for the January-March quarter.
Further, the consolidated revenue from operations came in at Rs 59,162 crore, which is up by 16.9 percent, from Rs 50,591 crore in the year-ago quarter at Rs 58,229 crore.
According to the company, the revenue rose 10.7 percent year-on-year (YoY), in constant currency (cc) terms.
Visibility For Growth
When it comes to Earnings before interest and taxes (EBIT), it stood at Rs 14,488 crore with EBIT margin contracting 0.5 percent YoY to 24.5 percent and Net margin came in at 19.3 percent.
The revenue growth was driven by the UK (17 percent QoQ), retail & consumer packaged goods (CPG) (13 percent QoQ) and life sciences and healthcare (12 QoQ percent), TCS said.
Further adding that 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 Chief Executive Officer and Managing Director, Rajesh Gopinathan said, “It is very satisfying to look back at our strong growth in FY 2023, 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. Krithi and I are working closely to ensure that the leadership transition over the next few months is smooth and seamless to all our stakeholders and that TCS is well positioned to capture the opportunities ahead,”.
The company said, TCS’s net headcount went up by 821 employees for the quarter with the last twelve-month IT Services attrition rate stood at 20.1 percent.
Recently, the IT service provider has announced a final dividend of Rs 24 per share.
Its Chief Financial Officer, Samir Seksaria said, “FY 23 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,”.
