TCS Q4 net profit beats estimates, rises 9%

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BENGALURU: The country’s largest IT services company Tata Consultancy Services (TCS) on Friday reported a 9% increase in its consolidated net profit for the fourth quarter ended March 31, 2024, at Rs 12,434 crore on the back of record deal wins.

Its revenue from operations for Q4 stood at Rs 61,237 crore, a growth of 3.5%, compared to Rs 59,162 crore in the year-ago period. TCS’ FY24 deal wins stood at an all-time high at $42.7 billion and in Q4, its total contract value (TCV) stood at $13.2 billion.

For full fiscal FY24, the company’s consolidated net profit stood at Rs 45,908 crore, a 9% growth, compared to Rs 42,147 crore in FY23, and its full year revenue stood at Rs 2,40,893 crore, up 6.8% year-on-year (YoY).

Addressing a press conference, K Krithivasan, chief executive officer and managing director of TCS, said, “We have won more than 200 engagements in AI so far this year and our AI and Gen AI pipeline have doubled in this quarter to $900 million.” The company’s growth in the fourth quarter was led by India at 37.9% and UK at 6.2%.

Its operating margin for the quarter stood at 26%, YoY expansion of 150 bps and net margin at 20.3%. N Ganapathy Subramaniam, COO and Executive Director, who will be retiring next month after working with the company for over 40 years, said barring one mega deal, deal sizes are mixed and broad-based. “Many of them are short-term deals of much lower value which is actually good for us,” he said. TCS CEO said no single individual can replace Subramaniam and that they don’t intend to appoint a new COO.

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