Tata Consultancy Services Ltd. (TCS) Q4FY24 Result First Cut – Promising growth led by deal wins and efficient management

  • Revenue rose 1.1% QoQ / 2.5% YoY in rupee terms to Rs. 61,237 crores, marginally below market estimates of Rs. 61,451 crores. This growth can be attributed to a strong rise in Indian revenue (up 37.9%), a revival in the UK business (up 6.2%), and the Regional markets vertical (up 9.7%).
  • EBIT grew 5% QoQ and 9.9% YoY to Rs. 15,918 crores, surpassing market expectations of Rs. 15,544 crores. The EBIT margin expanded to 26% (up 98 bps QoQ /up 151 bps YoY) owing to cost-cutting efforts and lower subcontracting costs.
  • Net income stood at Rs. 12,240 crores (up 12% QoQ /up 8.7% YoY), crossing market estimates of Rs. 12,034 crores. The PAT margin expanded to 20.3% (up 199 bps QoQ / up 97 bps YoY).
  • LTM attrition trended downwards to 12.5% in Q4FY24 compared to 13.3% in Q3FY24.
  • Order book recorded for FY24 was at USD 42.7 billion and for Q4FY24 at USD 13.2 billion, both an all-time high led by the mega deal with Aviva and other deals in the emerging markets vertical.
  • The board of directors has recommended a dividend of Rs. 28 per equity share.
  • Net cash from operations at Rs 12,931 which is 100.4% of net profit.
  • TCS reported a workforce of 601,546 employees as of March 31, 2023.

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