Both the top and bottom line figures were below Street estimates
India’s biggest IT firm Tata Consultancy Services (TCS) on April 12 reported 16.9 per cent year-on-year rise in its March quarter revenue at Rs 56,192 crore while profit rose 14.76 per cent year-on-year to Rs 11,392 crore. As per the data, TCS missed street’s estimates for fourth quarter of FY23.
TCS also declared a final dividend of Rs 24 per equity share for the fiscal year. TCS share price gained by 1 per cent by Wednesday with Q4 earnings in focus.
According to the company, revenue growth was driven by the UK (17 percent QoQ), retail & consumer packaged goods (CPG) (13 percent QoQ) and life sciences and healthcare (12 QoQ percent).
“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,” said Chief Executive Officer and Managing Director, Rajesh Gopinathan.
K Krithivasan, the CEO and MD-designate from mid-March, will formally take over from the incumbent Rajesh Gopinathan from June 1, the company said in a statement.
The company, the largest private sector employer in the country with over 5 lakh payrolls, said it has added a net of 821 employees during the quarter.
Ahead of the earnings announcement, the TCS counter gained 0.87 per cent to Rs 3,242.10 on the BSE, while the benchmark Sensex rallied for the eighth consecutive day, rising 235 points.
“FY 23 was a year of transition, as supply-side challenges abated while pandemic-depressed travel and discretionary spending normalised. We navigated this change well, without slowing down our investments in our people, research and innovation and intellectual property. Our longer-term competitiveness remains intact, giving us industry-leading profitability even as we pursue our growth aspirations,” said Samir Seksaria, Chief Financial Officer, TCS.
(With inputs from agencies)