TCS Q4 results: Profit jumps 14.8% to Rs. 11,392 crore
Tata Consultancy Services (TCS) has announced its financial results for the current fiscal year's fourth quarter. The company's consolidated net profit saw a 14.76% year-over-year increase to Rs. 11,392 crore in the January-March quarter. In the same quarter in 2022, the IT services firm recorded a profit of Rs. 9,926 crore. This is the company's last quarterly result update under outgoing CEO Rajesh Gopinathan.
Company's revenue jumped by Rs. 8,571 crore year-over-year
In the last quarter, TCS recorded a total income of Rs. 59,162 crore. Compared to the previous quarter and the same period last year, the consolidated revenue has increased by Rs. 933 core and Rs. 8,571 crore, respectively. In FY23, the firm reported a revenue of Rs. 2.25 lakh crore, which is 17.6% higher than the previous financial year.
TCS announced a dividend of Rs. 24 per share
During the January-March quarter, the company's net margin increased from 18.6% in the preceding quarter to 19.3%. Its operating margin, however, remained flat. It remains at 24.5%. The company also announced a final dividend of Rs. 24 per share.
The company only hired 22,600 employees in FY23
In FY23, TCS added 22,600 employees to its workforce, which is much lower than 1.3 lakh in FY22. This is a 78% decline in net headcount addition. The total workforce of the company as of March 31 is 614,795. In the December quarter, the total number of employees was 613,974. The company added 821 employees in the last quarter.
Attrition rate on an LTM basis fell to 20.1%
TCS recorded a fall in attrition. IT services attrition rate on an LTM (last twelve months) basis fell 120 basis points to 20.1%. In the previous quarter, it was 21.3%.
Q4 was weaker than expected: TCS CEO
"This quarter has come in weaker than what was expected," said CEO Gopinathan. He attributed the weak performance to banking struggles in the US. "FY23 was a year of transition, as supply-side challenges abated while pandemic-depressed travel and discretionary spends normalized. We navigated this change well, without slowing down our investments in our people, research and innovation, and intellectual property," said CFO Samir Seksaria.
