TCS Reports Strong Financial Growth in Q1 FY 2024-25
Tata Consultancy Services (TCS) has announced its financial results for the first quarter of the fiscal year 2024-25. The company reported a 9% year-on-year increase in net profit, reaching Rs 12,040 crore, up from Rs 11,042 crore in the same period last year. Revenue from operations rose by 5.4% to Rs 62,613 crore compared to Rs 59,386 crore in the first quarter of the previous fiscal year.
TCS declared a dividend of Rs 10 per share, showing its commitment to returning value to shareholders. The company also added 5,452 new employees between April and June 2024, reflecting its focus on talent acquisition and expansion.
Strategic Initiatives and Innovations
K Krithivasan, CEO and Managing Director of TCS, highlighted the company’s strategic initiatives in emerging technologies and innovation. This includes establishing new capabilities such as an AI-focused TCS PacePort in France and expanding delivery centers across Latin America, Canada, and Europe. He said, “I am pleased to report a strong start to the new fiscal year with all-round growth across industries and markets. We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe.”
Operational Performance
Samir Seksaria, CFO of TCS, emphasized strong operational performance despite wage increments. He stated, “In spite of the usual impact of the annual wage increments in this quarter, we have delivered strong operating margin performance, validating our efforts towards operational excellence. We remain focused on making the right investments in R&I and talent, strengthening our superior return ratios and creating long term value for our stakeholders.”
Employee Engagement
Milind Lakkad, Chief HR Officer, expressed satisfaction with the company’s employee engagement and development efforts, leading to industry-leading retention rates. He said, “I am delighted to announce the successful completion of our annual increment process. Our continued focus on employee engagement and development led to industry-leading retention and strong business performance, with the net headcount addition being a matter of immense satisfaction.”
Previous Quarter and Fiscal Year Performance
In the last quarter, TCS recorded a 9% increase in net profit for the fourth quarter of FY24, reaching Rs 12,434 crore compared to Rs 11,392 crore in Q4 FY23. The company’s revenue rose by 3.5% to Rs 61,237 crore in the three months ending March 31, 2024. For the entire fiscal year 2023-24, revenue grew by 6.8% to Rs 2,40,893 crore. TCS reported a net profit of Rs 46,585 crore for the fiscal year. The operating margin for Q4 FY24 stood at 26%, up 100 basis points from the previous quarter, while the full-year operating margin was 24.6%. Additionally, TCS achieved an all-time high quarterly deal win of USD 13.2 billion and a full-year deal wins of USD 42.7 billion.
