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IT Consulting & Software company Tata Consultancy Services announced Q4FY24 & FY24 results:
Financial Performance:
- TCS reported a total revenue of Rs 2,40,893 crore in FY24, growing by 6.8% YoY (CC: 3.4%).
- The operating margin in FY24 stood at 24.6%, while the net margin was reported at 19.3%.
- Net income for FY24 was Rs 46,585 crore, registering a 10.5% increase YoY.
- Q4FY24 saw a revenue of Rs 61,237 crore, marking a 3.5% YoY increase (CC: 2.2%).
- Q4FY24 operating margin expanded to 26.0%, with a 150 bps improvement YoY.
- Net margin for Q4FY24 increased by 100 bps YoY, leading to a net income of Rs 12,434 crore, up by 9.1% YoY.
- Record deal wins in FY24 with Total Contract Value (TCV) at an all-time high of $42.7 billion, including a Q4FY24 TCV record of $13.2 billion.
Client and Market Metrics:
- The cumulative client base includes 62 in the $100 million category ( 2 YoY) and 139 in the $50 million category ( 6 YoY).
- Major growth by markets: UK ( 10.1%) and Regional Markets ( 19.8%).
- By verticals, in FY24, leading growth industries were Energy, Resources and Utilities ( 12.6%), Manufacturing ( 7.3%), and Life Sciences & Healthcare ( 4.8%).
Employee Metrics:
- Total employee headcount stands at 6,01,546.
- IT Services Attrition for FY24 stands at a reduced rate of 12.5%.
- Gender diversity is at 35.6%, with the workforce comprising 152 nationalities.
Cash Flow and Dividend:
- Operating Cash Flow for Q4FY24 was robust at 100.4% of Net Income.
- A proposed final dividend per share of 28.
- Free Cash Flow at the end of FY24 reported was Rs 44,282 crore.
- Shareholder payout for FY24 amounted to Rs 46,223 crore via dividends and buyback.
Business Unit Highlights:
- Al.Cloud, Enterprise Solutions, IoT & Digital Engineering, and Cyber Security observed prominent growth.
- Strategic partnerships, expansions, and project developments with high-profile clients such as Aviva, Euroclear Finland, Central Bank, Nuuday, Enento Group, Toyota Motor North America, OTPP, easyJet, and AkzoNobel.
Awards and Recognition:
- TCS was honored with multiple industry awards and recognitions, including Global Top Employer 2024, FORTUNE's World's Most Admired Companies, and leadership positions in various service areas as assessed by industry analysts.
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 on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership.”
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.”
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