Tata Consultancy Services (TCS) on Wednesday reported a 14.76 per cent year-on-year (YoY) rise in consolidated net profit at Rs 11,392 crore for the March quarter compared with Rs 9,926 crore in the same quarter last year. Analysts were expecting profit growth in the 14-19 per cent range.
The Mumbai-headquartered IT giant reported a 16.94 per cent YoY jump in consolidated sales at Rs 59,162 crore compared with Rs 50,591 crore in the same quarter last year. Analysts were expecting sales growth at about 20 per cent. In constant currency terms, revenue growth stood at 10.7 per cent on YoY basis.
The IT firm declared a final dividend of Rs 24 per share for FY23.
Among verticals, the growth was led by Retail and CPG (up 13 per cent) and Life Sciences and Healthcare (up 12.3 per cent). Other verticals grew in the single digits. They included Technology & Services (up 9.2 per cent), BFSI (up 9.1 per cent), Manufacturing (up 9.1 per cent) and Communications & Media (up 5.3 per cent).
Among geographies, the growth was led by UK (up 17 per cent), followed by North America (up 9.6 per cent) and Continental Europe (up 8.4 per cent).
Among emerging markets, Latin America grew 15.1 per cent, India 13.4 per cent, Middle East & Africa 11.3 per cent and Asia Pacific grew 7.5 per cent.
CEO and MD Rajesh Gopinathan said: “It is very satisfying to look back at our strong growth in FY2023, 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."
Rajesh Gopinathan unexpectedly resigned last month after leading the IT major for six years. Under Gopinathan, the Tata group firm handled external pressures, including a transition to Digital delivery and the Covid impact relatively well despite its size. But, TCS' growth trailed peer Infosys of late.
"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 said. K Krithivasa will take over as CEO from June 1.
Other income for the quarter came in at Rs 1,175 crore compared with Rs 981 crore YoY, TCS said in a BSE filing. Ahead of its quarterly results, shares of TCS settled the day at Rs 3,242.10, up 0.87 per cent.