Tata Consultancy Services Ltd (TCS) reported its earnings for the quarter and financial year ending on March 31, 2024 on Friday and earnings were mostly in-line with the expectations with some surprises. The IT major claimed to mark a strong finish to FY24 on the back of record deal wins and robust margins. The FY24 order book total contract value (TCV) of TCS came in at an all-time high of $42.7 billion, while its recorded TCV at $13.2 billion for the quarter. The company's full year revenue increased 6.8 per cent on a year-on-year basis to Rs 2,40,893 crore, up 3.4 per cent in constant currency terms. Operating margins for the year stood at 24.6 per cent, while net margins for FY24 came in at 19.3 per cent. Here are the key highlights for the fourth quarter results of TCS results:
* TCS reported a revenue of Rs 61,237 crore, up 3.5 per cent on a year-on-year (YoY) basis, while revenue growth in constant currency terms stood 2.2 per cent for the quarter.
* The growth was mostly led by India (up 37.9 per cent), UK (6.2 per cent) and manufacturing (9.7 per cent) for the reported quarter.
* TCS' operating margins expanded 150 basis points (bps) for the quarter to 26 per cent, while net margins came in at 20.3 per cent, up 100 basis points.
* Net profit of TCS, attributable to owners of the company, stood at Rs 12,434 crore, rising 9.1 per cent YoY.
* The company proposed a final dividend of Rs 28 per share for the eligible shareholders of the company, subject to necessary approval. Here are the key highlights for the financial year 2023-24
* TCS reported 62 clients with more than $100 million band. The number stood at 60 in the year ago period. Also, clients in the price band of $50 million increased by 6 to 139 for the year.
* The total headcount of TCS stood at 6,01,546 for the year ended on March 31, 2024, which included employees from 152 nationalities, of which 35.6 per cent were women. IT services' attrition stood at 12.5 per cent.
* The company acquired 5 million competencies and the number of contextual masters stood at 73,000.
* The free-cash flow of the company stood at Rs 44,282 crore for the period
* The company reported a shareholder payout of Rs 46,223 crore in the form of dividends and buyback. "We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26 per cent operating margin, validating the robustness of our business model and execution excellence, said K Krithivasan, Chief Executive Officer and Managing Director of Tata Consultancy Services. "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," he said. Shares of Tata Consultancy Services (TCS) settled at Rs 4000.30 on Friday, up 0.45 per cent for the day. The country's largest software exporter commanded a total market capitalization of more than Rs 14.45 lakh crore for the day.