Software major Tata Consultancy Services (TCS) on Wednesday reported a 14.8 per cent rise in its net profit for the January-March 2022-23 quarter at Rs11,392 crore against Rs9,926 crore in the year-ago quarter.
TCS, the top software company by revenue and market value, said its revenue for the quarter ended 31 March 2023 rose 16.9 per cent to Rs59,162 crore from Rs50,591 crore a year ago.
For the full year, TCS said its revenue rose 17.6 per cent year-on-year to Rs2,25,458 crore and net income by 10 per cent to Rs42,147 crore.
The company’s operating margins for the January-March 2023c quarter improved to 24.5 per cent, from 24.1 per cent a year ago, while net margin increased to 19.3 per cent in the quarter against 18.7 per cent.
TCS, which accounts for more than 85 per cent of Tata Group net income, said its free cash flow stood at Rs41,440 crore, which is 104.1 per cent of the net income, and declared a final dividend of Rs24 per share.
This takes TCS’s annual payout to Rs45,602 crore.
TCS said despite troubles in the North American banking sector, the region continues to lead revenue growth with 15.3 per cent more than what it did last year, followed by England, which reported 15 per cent more growth year-on-year and home market chipped in with 14.6 per cent higher revenue in Q4 2022-23.
TCS, the segment leader in employment, and the largest private sector employer in the country, added a net 22,600 employees during the year, including 821 in the January-March 2023 quarter.
This has taken the total number of its payrolls to 614,795 from 150 nationalities and women constituting 35.7 per cent of the workforce.
The software major said its attrition rate stood at 20.1 per cent, marginally better than the previous quarters.
TCS said its order book for the full financial year stood at $34.1 billion, of which Q4 accounted for $10 billion, which also included record number of high-value deals.
The major clients include 60 in the $100 million-plus band, 133 in the $50 million-plus band, 291 in the $20 million-plus bracket and 461 in the $10 million-plus segment.
"It is very satisfying to look back at our strong growth in FY23, on top of the mid-teen growth in FY22.
“The strength of our order book demonstrates the resilience of demand for our services and gives us the visibility for growth in the medium term," said Rajesh Gopinathan, the outgoing chief executive.
He said growth was led by retail and consumer groups with a 13 per cent rise, followed by life sciences and healthcare, which logged 12.3 per cent, while other verticals grew in single digits. Technology & services increased by 9.2 per cent, the largest revenue head -- the BFSI sector -- grew at a lower 9.1 per cent, manufacturing rose by 9.1 per cent, and communications and media grew the slowest at 5.3 per cent.
TCS said on Wednesday that interim CEO K Krithivsan will take over charge of the company on 1 June 2023, even as current CEO and MD Rajesh Gopinathan, will continue to assist him in a smooth transition till end of September 2023.
Krithivasan during the media briefing said that his immediate focus will be to meet customers. "The immediate agenda is to meet all our customers. All these years I have been focused on the BFSI vertical, now I want to be focused on the non-BFSI side of the business too," he added.
Gopinathan added that over the next six to eight weeks he and Krithivasan would be extensively travelling to meet clients.
When asked if he would want to make any changes to the recent restructuring that the company had announced, Krithivasan said adding, "The structure was put in place after much consultation and deliberations. If there is a demand we may tweak it a bit."
Last month, TCS announced that Gopinathan has decided to step down of his current role and also resign from the company to pursue other interests. He has been with TCS for over 22 years and has been at the helm of the company for six years.