TCS Q4 Results: Profit Rises, Announces Final Dividend & More

Summary
TCS Q4 Results: The latest from Tata Consultancy Services (TCS): Q4 unveils a robust performance, exceeding analyst projections with impressive margin growth, fueled by significant order wins. Setting a new benchmark, the order book for FY24 reached an unprecedented high, soaring to $42.7 billion, signalling promising prospects ahead.

Contents

TCS Q4 Results: Profit Rises, Announces Final Dividend & More TCS Q4 Results Financial Highlights FY24 Performance Overview Order Book and EBIT Margins Regional Performance Segment-wise Analysis Dividend Declaration HR Metrics Market Reaction TCS Share Price Analysis

TCS Q4 Results Financial Highlights

Fresh from the corner offices of Tata Consultancy Services (TCS): In Q4, the Indian IT powerhouse TCS saw its net profit soar by 12.6% quarter-on-quarter (QoQ) to ₹12,502 crore, with consolidated revenue reaching ₹62,394 crore, marking a 1.5% QoQ rise. These results outperformed market expectations, indicating a strong showing.

FY24 Performance Overview

Looking at the full fiscal year of FY24, TCS reported a solid 8.9% year-on-year (YoY) increase in net profit to ₹46,099 crore and a 7.1% YoY uptick in consolidated revenue to ₹2,45,315 crore.

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Order Book and EBIT Margins

Taking a closer look at the figures, TCS’s order book for the fourth quarter was $13.2 billion, while the total contract value for fiscal year 2024 reached a record $42.7 billion. Noteworthy, the earnings before interest and taxes (EBIT) margin climbed to 26% from 25% in the previous quarter.

Regional Performance

In the fourth quarter results of TCS, India saw strong growth of 37.9% in fiscal year 2024, whereas Continental Europe and North America experienced slight declines. In emerging markets, the Middle East & Africa, Latin America, and Asia Pacific experienced healthy growth rates.

Segment-wise Analysis

Segment-wise, Manufacturing & Energy & Utilities were the stars, boasting growth rates of 9.7% and 7.3% respectively in FY24. Conversely, sectors like BFSI, technology, and communication saw declines ranging from 3% to 5.5% during the fiscal year.

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Dividend Declaration

TCS Final Devidend: TCS also declared a final dividend of ₹28 per share, a boon for shareholders, to be disbursed post their 29th annual general meeting.

HR Metrics

TCS Q4 Results: On the human resources front, TCS’s total employee count stood at 601,546 as of March 31. Impressively, the IT services attrition rate dipped further to 12.5% over the last twelve months, down from 13.3% in the previous quarter.

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Market Reaction

Before the TCS Q4 results announcement, TCS shares closed 0.48% higher, reaching a day high of ₹4,013 per share. As the results were disclosed after market hours, the exact impact will be observed on April 15.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, shed light on crucial levels concerning TCS share price. He noted, “TCS share price has shown strong momentum over the past 5 months, currently hovering around the significant 50EMA level of ₹3,975 zone, with near-term support at approximately the 100 period MA level of ₹3,875. Maintaining crucial support near the 200 period MA of ₹3,650 level is essential; failure to do so may weaken the trend. On the upside, a decisive breach above the resistance zone of ₹4,250 level is pivotal to signal a breakout. Subsequently, it would establish conviction for further upward movement, with targets of ₹4,530 and ₹4,720 levels for the medium-term time frame.”

Aspect	Details
TCS Q4 Results Highlights	In Q4, TCS witnessed a 12.6% QoQ rise in net profit to ₹12,502 crore, with consolidated revenue reaching ₹62,394 crore, marking a 1.5% QoQ increase. These results outperformed market expectations, indicating a strong showing.
FY24 Performance Overview	For FY24, TCS reported an 8.9% YoY increase in net profit to ₹46,099 crore and a 7.1% YoY uptick in consolidated revenue to ₹2,45,315 crore.
Order Book and EBIT Margins	TCS’s Q4 order book stood at $13.2 billion, with the total contract value for FY24 hitting a record $42.7 billion. The EBIT margin climbed to 26% from 25% in the previous quarter.
Regional Performance	India witnessed robust growth of 37.9% in FY24, while Continental Europe and North America faced slight declines. Emerging markets, including the Middle East & Africa, Latin America, and Asia Pacific, experienced healthy growth rates.
Segment-wise Analysis	Manufacturing & Energy & Utilities saw growth rates of 9.7% and 7.3% respectively in FY24. Conversely, sectors like BFSI, technology, and communication saw declines ranging from 3% to 5.5% during the fiscal year.
Dividend Declaration	TCS declared a final dividend of ₹28 per share, to be disbursed post their 29th annual general meeting.
HR Metrics	TCS’s total employee count stood at 601,546 as of March 31. The IT services attrition rate dipped further to 12.5% over the last twelve months, down from 13.3% in the previous quarter.

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