TCS Q4 FY23: Net Income Grows 14.8% To Rs 11,392 Cr

Tata Consultancy Services (TCS) on Wednesday reported a 14.8 per cent year-on-year (YoY) jump in its Net Income at Rs 11,392 crore for Q4 FY2023.

The company’s revenue grew to Rs 59,162 crore, up 16.9 per cent YoY (CC: 10.7 per cent).

During the earnings presentation, Rajesh Gopinathan, CEO, TCS said “We have ended Q4 in a strong note.”

In the quarter, TCS’ growth was led by UK market (up 17 per cent). North America grew 9.6 per cent while Continental Europe grew 8.4 per cent. Among emerging markets, Latin America grew 15.1 per cent, India grew 13.4 per cent, Middle East & Africa grew 11.3 per cent and Asia Pacific grew 7.5 per cent.

Growth in Q4 was led by Retail and CPG (+13 per cent) and Life Sciences and Healthcare (+12.3 per cent). Other verticals grew in the single digits. Technology & Services grew 9.2 per cent, BFSI grew 9.1 per cent, Manufacturing grew 9.1 per cent and Communications & Media grew 5.3 per cent.

TCS Operating Margin for Q4 was up 24.5 per cent; Net Margin was up 19.3 per cent.

Meanwhile, the company’s Net Income Rs 11,392 crore, up 14.8 per cent YoY.

The company reported Strong Cash conversion, where Operating Cash Flow was 104.1 per cent of Net Income.

In a statement, 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.”

TCS’ workforce was at 6,14,795 as on 31 March, 2023, a net addition of 821 in Q4 and 22,600 for the year. IT services attrition on an LTM basis continued to trend down and was at 20.1 per cent.