Tata Consultancy Services (TCS) announced a 14.76% year-on-year (YoY) increase in consolidated net profit for the March quarter, at Rs 11,392 crore, compared to Rs 9,926 crore in the same period last year. Analysts predicted a profit increase in the range of 14–19%.
The Mumbai-based IT behemoth recorded a 16.94% YoY increase in consolidated revenues to Rs 59,162 crore, up from Rs 50,591 crore in the same period last year. Analysts predicted a rise in sales of almost 20%. Revenue increased 10.7% year over year in constant currency terms.
In FY23, the IT business announced a final dividend of Rs 24 per share.
Retail and CPG (up 13%) and Life Sciences and Healthcare were the fastest-growing verticals (up 12.3 percent). Some verticals had single-digit growth. These included Technology & Services (up 9.2%), BFSI (up 9.1%), Manufacturing (up 9.1%), and Communications & Media (up 5.3 percent).
North America came in second (up 9.6%), and Continental Europe came in third (up 9.6%), with the United Kingdom leading the growth (up 8.4 percent).
Latin America gained 15.1%, India 13.4%, the Middle East and Africa 11.3%, and Asia Pacific increased 7.5% among developing markets.
CEO and MD Rajesh Gopinathan said: “It is very satisfying to look back at our strong growth in FY2023, 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.”
Rajesh Gopinathan abruptly quit last month after six years as CEO of the technology conglomerate. Despite its size, the Tata Group business managed external constraints, such as the move to digital delivery and the COVID effect, pretty successfully under Gopinathan. Nevertheless, TCS has recently lagged behind rival Infosys in terms of growth.
“Krithi and I are working closely together to ensure that the leadership transition over the next few months is simple and seamless for all of our stakeholders and that TCS is well positioned to capitalise on the possibilities ahead,” Gopinathan said. K. Krithivasa will become CEO on June 1.
TCS stated in a BSE filing that other income for the quarter was Rs 1,175 crore, up from Rs 981 crore year over year. TCS shares closed the day at Rs 3,242.10, up 0.87 percent, ahead of its quarterly reports.
