TCS Q4 Results: Con PAT To Owners Rise By 9% YoY To Rs 12,434 Crore, Beats Street Estimates

Tata Consultancy Services (TCS) has reported its financial earnings for the quarter and full-year ending period on March 31, 2024. TCS posted a consolidated PAT of Rs 12,434 crore in Q4FY24, attributable to owners of the company, registering a growth of 9.1% YoY. Sequentially, the growth in the bottom line came in at 12.44%. That being said, TCS beats street estimates in Q4 earnings.

TCS had reported net profit to owners to the tune of Rs 11,392 crore in Q4FY23 and Rs 11,058 crore in Q3FY24.

The top-line front was also steady in Q4FY24. Consolidated revenue from operations stood at Rs 61,237 crore in Q4FY24, rising by 3.51% from Rs 59,162 crore in the same quarter a year ago. While revenue was up by 1.08% from Rs 60,583 crore in Q3FY24.

In constant current, revenue growth was at 2.2% year-on-year in Q4FY24. The growth was led by Indian business which registered an upside of 37.9%. In segment-wise, TCS recorded healthy growth in manufacturing at a staggering 9.7% YoY, followed by 7.3% growth in Energy, Resources and Utilities, and 1.7% growth in the Life Sciences & Healthcare business.

On an expected line, the top line remained under pressure in segments like BFSI where revenue declined by 3.2% YoY, consumer business revenue which was down by 0.3%, technology & services revenue which dropped by 5.6%, and communication & media where revenue tumbled by 5.5%. These segments have been in challenging conditions throughout FY24.

Coming margins, TCS reported an operating margin of 26% in Q4FY24, which expanded by 150 bps. Further, net margins also expanded by 100 bps to 20.3%.

On quarterly performance, N Ganapathy Subramaniam, Chief Operating Officer and Executive Director said: "Our Q4 performance is robust, with broad-based deal wins across industries and geographies. Our products and platforms business sparkled with the mega-deal win at Aviva and emerging markets had another stellar growth quarter demonstrating the power of TCS' diversified portfolio."

For full-year FY24, here are the key highlights of TCS earnings:

- FY 24 Order Book TCV at an all-time high of $42.7 billion; Record Q4 TCV at $13.2 billion.

- Full Year Revenue Rs 240,893 crore, up by 6.8% YoY%. Constant currency revenue growth was at 3.4%.

- Growth led by UK (+10.1%) and Regional Markets (+19.8%).

- By verticals, Growth led by Energy, Resources and Utilities (+12.6%), Manufacturing (+7.3%), and Life Sciences & Healthcare (+4.8%).

- Operating Margin at 24.6%; while Net Margin was at 19.3% in FY24.

- Net Income stood at Rs 46,585 crore, up 10.5% YoY.

On the overall performance, K Krithivasan, Chief Executive Officer and Managing Director said: "We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence. In an environment of global macro uncertainty, we are staying close to our customers and helping them execute their core priorities with TCS' portfolio of offerings, innovation capabilities and thought leadership."

TCS's share price ended at Rs 4000.30 apiece, up by 0.45% with a market cap of Rs 14,47,343.55 crore on April 12 ahead of the earnings. TCS share will react to its Q4 results on Monday.