On better margin, strong India business
Mumbai: Tata Consultancy Services (TCS) on Friday reported a 9 per cent growth in net profit at Rs12,434 crore in January-March quarter of FY24, helped by improved margin and strong performance of its India business.
The largest software services exporter had reported a post tax profit of Rs11,392 crore in the same period of the preceding fiscal.
In the entire FY24, the company’s net profit surged 9 per cent to Rs45,908 crore, while the revenue rose to Rs2,40,893 crore from Rs2,25,458 crore registered in FY23.
In the reporting quarter, the company was able to expand its operating margin by 1.50 per cent to 26 per cent, which boosted the profit.
Revenue also increased by 3.5 per cent to Rs61,237 crore during the reporting quarter from Rs 60,583 crore in the corresponding quarter a year ago.
In the fourth quarter of FY24, the company bagged new orders worth $13.2 billion, highest-ever in a quarter.
Profit margin and order book validates the robustness of the business model and execution excellence, chief executive and managing director K Krithivasan said in a statement.
“In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership,” he said.
Amid expectations of a ramp-up in the over Rs15,000-crore deal with BSNL, the company’s revenue from India business grew 38 per cent, taking the home country’s contribution to the topline to 6.7 per cent in March 2024 from 5 per cent in the year-ago period.
Its largest market of North America witnessed a 2.3 per cent decline in revenue during the quarter. The contribution of this market in the company’s topline fell to 50 per cent from 52.4 per cent in the year-ago period.
The company also reported a dip in its staff strength by close to 2,000 people during the reporting quarter. Its overall workforce stood at 6,01,546 as of March 31, 2024.
The attrition in IT services dropped to 12.5 per cent from 13.3 per cent in the quarter-ago period.
TCS scrip closed 0.45 per cent higher at Rs4,000.30 apiece on the BSE on Friday as against a 1.06 per cent correction in the benchmark index.
