- 15 Apr 2024
- ICICIdirect
TCS Q4 Results 2024: Profit above expectation, declares dividend
TCS - 3870 Change: 48.85 (1.28 %)
TCS has kicked off the earnings season for the March quarter on 12th April 2024. The results for Q4FY24 are above expectations with the bottomline beating expectations. Let us look at the March quarter numbers in detail.
About TCS
Tata Consultancy Services (TCS) is a global IT services and consulting company headquartered in Mumbai, India. It is one of the largest IT services firms in the world, providing a wide range of services, including software development, infrastructure management, and business process outsourcing.
Crucial Parameters
- PE Ratio: 34.86
- ROE: 51.80
- Market Cap: 14,47,343.55
- 52-week high: Rs 4,254.45
TCS Share Price Movement
On 12th April 2024, the TCS share price closed 0.48% higher at Rs 4,003.80 per share. In the six months, the TCS shares gave 10.26% returns. In the last one year, the share price has delivered over 22.61% returns to investors, and in the 5 years, the return has been 86.22%.
TCS Q4FY24 result details
Here are the March quarter and annual result updates from TCS:
Revenue: The company reported revenue of Rs 61,237 crore in Q4FY24, a growth of 3.5% YoY. The revenue increased by 2.2% in constant currency terms. In the previous quarter, the company reported revenue of Rs 60,583 crore, so QoQ growth has been at 1.8%. Growth was led by the Manufacturing which grew 9.7% and Energy, Resources, and Utilities vertical, which grew 7.3%. Life Sciences & Healthcare saw muted growth. Other industries like BFSI, Communication & Media, and Technology & Services contracted in the March quarter.
Among major markets, Latin America led with 9.8% growth; the United Kingdom grew 6.2%, and North America contracted 2.3%. In emerging markets, India led with 37.9% growth.
Profit: TCS reported a net profit of Rs 12,434 crore in Q4FY24 compared to Rs 11,392 crore in Q4FY23, a growth of 9.2% year on year. Compared to the December quarter (sequentially), the profits have increased from Rs 11,097 crore.
Order Book: TCS FY24 order book (Total Contract Value) is at a time high of $42.7 billion. It was at record in Q4 with TCV at $13.2 billion.
Other crucial updates: Operating Margin for the quarter stood at 24.6%, a contraction of 40 basis points sequentially and 150 basis points expansion year on year. The net margins came at 20.3% for the March quarter, a YoY expansion of 100 bps. TCS' headcount declined for the first time in 19 years, since the company was listed in 2004. The company's headcount declined by 1,759 quarter-on-quarter in the fourth quarter. The headcount has declined by 13,249 employees during FY24.
Dividend: The board has approved a final dividend of Rs 28 per share. It shall be paid/dispatched on the fourth day from the conclusion of the 29th Annual General Meeting, subject to the approval of the shareholders of the Company.
Management: "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 on their core priorities with TCS’ portfolio of offerings, innovation capabilities, and thought leadership.", CEO, TCS.