Tata Consultancy Services Q4 Results FY2023, Net profit at Rs. 11,392 crores

On 12th April, Tata Consultancy Services announced its results for the quarter.

Key Highlights:

- The company reported revenue at Rs. 59,162 crores, up by 16.94% YoY
- Order Book at $34.1 billion for FY23
- Operating Margin at 24.1%
- Net Margin at 18.7% 
- The company reported its net profit at Rs. 42,417 crores for FY23 and Rs. 11,392 crores for Q4FY23.

Employee count:

- TCS’ workforce was at 614,795 as on March 31, 2023, a net addition of 821 in Q4 and 22,600 for the year. 

Segment Highlights:

- Growth in Q4 was led by Retail and CPG (+13%) and Life Sciences and Healthcare (+12.3%). Other verticals grew in the single digits. Technology & Services grew 9.2%, BFSI grew 9.1%, Manufacturing grew 9.1% and Communications & Media grew 5.3%.
- On a full-year basis, growth was led by Retail and CPG (+19.7%) and Communications & Media (+14%). All other verticals showed growth in a narrow band around the company average. Technology & Services grew 13.7%, Life Sciences and Healthcare grew 13.3%, Manufacturing grew 13%, and BFSI grew 11.8%.
- Q4 growth was led by UK which grew 17%. North America grew 9.6% while Continental Europe grew 8.4%. Among emerging markets, Latin America grew 15.1%, India grew 13.4%, Middle East & Africa grew 11.3% and Asia Pacific grew 7.5%
- On a full-year basis, among major markets, North America grew 15.3%, UK grew 15% and Continental Europe grew 11%. In emerging markets, Latin America grew 17.3%, India grew 14.6%, Middle East & Africa grew 7.8% while Asia Pacific grew 7.6%.

Partnerships:

- TCS has expanded its decade-long partnership with SAS as they continue to transform their business under SAS-FORWARD initiative until 2028. 
- TCS is selected by IHG Hotels & Resorts, one of the world’s leading hotel companies, to drive enterprise process automation across Finance, Travel Agent Commission, Revenue Compliance & Audit, Revenue Services, Sales, and HR.
- TCS is selected by ENMAX Corporation, a North American utilities company, to modernize their billing and customer care processes.
- Selected by an American energy company to enable next gen IT operations and seamless carve out of their clean energy arm with zero disruption.
- Selected by Bombardier, a global leader in aviation, as the principal strategic partner for their IT and digital transformation that aims to enhance agility. T
- Selected by a North American energy company, to improve their overall cyber security posture following a recent acquisition.
- TCS has been awarded a multi-year contract by Singapore Airlines for application maintenance and support with the aim to harness the multiplier effect of AI/ML for improved efficiencies

Commenting on the results, Rajesh Gopinathan, Chief Executive Officer and Managing Director, 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.”