TCS Q4 revenue up 14.8% to Rs 11,392 cr

Mumbai: Software major Tata Consultancy Services (TCS) on Wednesday opened the earnings season for the March quarter with a 14.8 per cent growth in net income to Rs 11,392 crore against Rs 9,926 crore in the year-ago period. The largest software company by revenue and market value said its revenue rose 16.9 per cent to Rs 59,162 crore in the March 2023 quarter from Rs 50,591 crore a year ago.

For the full year, the Tata Group flagship reported a 17.6 per cent year-on-year rise in revenue to Rs 2,25,458 crore and earned a net income of Rs 42,147 crore, which was 10 per cent more than it booked in the 12 trailing months.

The company, which abruptly announced the departure of the incumbent chief executive and managing director Rajesh Gopinathan last month - four years before his second five-year term to end, said chief executive-designate K Krithivasan will assume charge from June 1, which is a full one-month ahead of the previous announcement.

The company saw improvement in its operating margins at 24.5 per cent, up from 24.1 per cent a year ago, and net margin increased to 19.3 per cent in the quarter against 18.7 per cent. TCS -- the cash cow for the Tata Group with more than 85 per cent of the group's net income -- said its free cash flow stood at Rs 41,440 crore, which is 104.1 per cent of the net income, and declared a final dividend of Rs 24 per share. This will take the annual payout to Rs 45,602 crore.

In a statement, TCS said despite the 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 the reporting period.