BENGALURU: IT services company Tata Consultancy Services (TCS) on Wednesday reported a 15 per cent increase in its consolidated net profit for the fourth quarter ending March 31, 2023, at Rs 11,392 crore compared to Rs 9,926 crore in the same quarter last year.
The company's revenue from operations for the fourth quarter stood at Rs 59,162 crore, a 17 per cent increase compared to Rs 50,591 crore in the year-ago period. For the full fiscal FY23, the company's net profit stood at Rs 42,147 crore, a 10 per cent increase compared to Rs 38,327 crore in the previous fiscal.
Its revenue from operations in FY23 stood at Rs 2,25,458 crore, a 17.6 per cent increase compared to Rs 1,91,754 crore in the previous fiscal.
TCS's operating margin for the fourth quarter stood at 24.5 per cent and net margin at 19.3 per cent.
Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS 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."
The company also announced that K Krithivasan will take over as CEO and MD from June 1, 2023. "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," Gopinathan added.
TCS' growth in Q4 was led by Retail and CPG (+13 per cent) and Life Sciences and Healthcare (+12.3 per cent). Other verticals grew in the single digits. On a full-year basis, growth was led by Retail and CPG (+19.7 per cent) and Communications & Media (+14 per cent).
On a full-year basis, among major markets, North America grew 15.3 per cent, the UK grew 15 per cent and Continental Europe grew 11 per cent.
In Q4, TCS added 821 employees and 22,600 for the year. Its workforce stood at 614,795 as on March 31, 2023. IT services attrition on an LTM basis continued to trend down and was at 20.1 per cent.
The directors have recommended a final dividend of Rs 24 per equity share.