TCS Q4 takeaways: Updates on new CEO, job offers, dividend, profit, attrition & more

Tata Consultancy Services on Wednesday reported its results for the quarter and financial year ended March 31, 2023. The company managed to report double-digit growth in the topline and bottom in Q4FY23. Earlier in the day, shares of the company settled 0.87 per cent up at Rs 3242.10, while the benchmark BSE Sensex closed 0.39 per cent higher at 60392.77. Here are top key takeaways from the IT major’s Q4 earnings.

TCS Q4 results: sales and profit

Gross sales of TCS increased by 16.94 per cent YoY to Rs 59,162 crore for the quarter ended March 31, 2023. The figure stood at Rs 58,229 crore in the same quarter a year ago. On the other hand, profit attributable to shareholders of the company witnessed a rise of 14.77 per cent to Rs 11,392 crore during the quarter under review.

Segment revenue

Revenue from banking, financial services and insurance segment, which contributes over 35 per cent in top line, increased by 15.90 per cent to Rs 22,628 in Q4FY23. Revenue from other segments including manufacturing increased by 12.1 per cent to Rs 5,550 crore, communication, media and technology (up 14.4 per cent to Rs 9696 crore), retail and consumer business (up 19.10 per cent) and life sciences and healthcare (up 21.60 per cent).

Operating income  

The operating income of the company also increased by 14.80 per cent YoY to Rs 14,216 crore for the quarter ended March 2023 against Rs 12,383 crore in the same quarter a year ago.

Annual results

Consolidated revenue from operations of TCS rose 17.58 per cent YoY to Rs 2,25,458 crore in FY23 against Rs 1,91,754 crore in FY22. Likewise, the net profit of the IT firm jumped 9.97 per cent YoY to Rs 42,147 crore for the year ended March 2023.
 
Dividend

The company also announced a dividend of Rs 24 per share, taking the total amount to Rs 115 per share for the financial year ended March 2023. Total shareholder payout stood at Rs 45,602 crore in FY23 in the form of dividends, according to TCS. Promoters held a 72.3 per cent stake in the company as of December 31, 2022.

From the desk of CEO and MD

While sharing his views on Q4 earnings, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “It is very satisfying to look back at our strong growth in FY 2023, 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. 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.”

Change in leadership

K Krithivasan to take over as Chief Executive Officer and Managing Director from June 1,2023.

What’s in it for employees

Milind Lakkad, Chief HR Officer, said: “As we grow the TCS family, I want to call out the stellar role played by our recruitment team in swiftly scaling up hiring, and onboarding the best available talent, enabling TCS to meet its delivery commitments and capture growth. We are honoring all job offers, and have added 22,600 employees on a net basis in FY 23. During the year, we onboarded over 44K freshers and our highest-ever number of experienced professionals. We also doubled down on organic talent development, obtaining over 53K cloud certifications during the year, bringing the total to over 110K employees certified on hyperscaler platforms. This places us among the top 2 partners for the largest cloud providers.”