TCS Q4 Results Highlights: Tata group IT major kicks off Q4 results season with profit lagging Street estimates, announces Rs 24 a share dividend

TCS Q4 Results | Margin remains flat sequentially at 24.5%, misses analysts' estimate by a thin margin

The IT major's margin remains steady at 24.5 per cent for the quarter ended March 2023 compared with the previous three months.

According to Zee Business research, Tata Consultancy Services' margin for the final quarter of the financial year gone by was pegged at 24.8 per cent.

TCS Q4 Results LIVE | CFO Samir Seksaria calls 2022-23 a year of transition, says supply-side challenges abated, pandemic-depressed travel, discretionary spends normalised

"We navigated this change well, without slowing down our investments in our people, research and innovation and intellectual property," says Samir Seksaria, Chief Financial Officer, TCS. "Our longer term competitiveness remains intact, giving us industry-leading profitability even as we pursue our growth aspirations,” he adds.  

TCS Q4 Results | Attrition eases to 20.1% in Q4 from 21.3% in Q3 

TCS reports attrition of 20.1 per cent in IT services on an LTM or last-twelve-months basis, as against 21.3 per cent three months ago. The IT major says its workforce was at 6,14,795 as on March 31, 2023, a net addition of 821 in Q4, and 22,600 for the year.

TCS also says its workforce continues to be very diverse, comprising 150 nationalities and with women making up 35.7 per cent of the base.

TCS Q4 Results LIVE | Tata group IT giant says clients carefully calibrated spends in a challenging environment

TCS says its clients prioritised cost optimisation, vendor consolidation and automation initiatives. "In-flight technology transformation initiatives continued to be funded but with the expectation of earlier and higher RoI. Growth was led by Cloud, Cyber Security, Enterprise Application Services, and Cognitive Business Operations," TCS adds. 

TCS Q4 Results LIVE | Tata group IT giant reports single-digit percentage growth in tech & services, BFSI, manufacturing, communications & media segments

Here's a look at the growth numbers, as reported by TCS on April 12:

• Retail and CPG: 13 per cent
• Life sciences and healthcare: 12.3 per cent
• Technology & services: 9.2 per cent
• BFSI: 9.1 per cent
• Manufacturing: 9.1 per cent
• Communications & media: up 5.3 per cent 

TCS Q4 Results LIVE | Outgoing CEO Rajesh Gopinathan says very satisfying to look back at our strong growth in FY on top of mid-teen growth in previous year

Rajesh Gopinathan, the outgoing CEO of TCS, says: "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 (Krithivasan) 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," Gopinathan adds. 

TCS Q4 Results LIVE | TCS says cash conversion strong, operating cash flow 104.1% of net income

TCS Q4 Results LIVE | Revenue growth led by UK, retail & consumer packaged goods (CPG), life sciences & healthcare segments 

TCS reports revenue of Rs 59,162 crore for the three-month period, marking an increase of 16.9 per cent compared with the corresponding period a year ago. Revenue growth in constant currency terms stands at 10.7 per cent, according to the company. 

TCS Q4 RESULTS LIVE | Tata Consultancy Services says K Krithivasan to take over as CEO and MD from June 1, 2023

TCS Q4 RESULTS LIVE | TATA GROUP IT MAJOR ANNOUNCES DIVIDEND OF Rs 24 PER SHARE

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TCS Q4 RESULTS | REVENUE UP 1.6% AT Rs 59,162 CRORE VS Rs 58,229 CRORE IN Q3

Tata Consultancy Services' revenue for the January-March quarter comes in at Rs 59,162 crore, marking an increase of 1.6 per cent compared with the previous three months.  

Its revenue growth in constant currency terms comes in at 10.7 per cent, as against 13.5 per cent for the quarter ended December 2022, according to a company statement.

Revenue in dollar terms expands 1.7 per cent to $7,195 million for the three-month period. 

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TCS Q4 RESULTS | PROFIT UP 5% AT RS 11,392 CRORE VS Q3; BOARD DECLARES Rs 24/SHARE DIVIDEND

TCS shares declined 1.6% in January-March 2023, still better than Nifty50 

Tata Consultancy Services (TCS) shares lost 1.6 per cent of their value in the quarter ended March 2023, a period in which the headline Nifty50 index fell 4.1 per cent.

The IT index, however, eked out a gain of 0.3 per cent.

How TCS shares have moved over past years

As of April 12, 2023, TCS shares have grown almost 106 per cent over the past five years, a period in which the Nifty50 headline index has risen 70 per cent. However, the Nifty IT index — whose 10 constituents include TCS, Infosys, Wipro, HCL Tech and Tech Mahindra — has soared 120 per cent during this period. 

Tata group IT major named K Krithivasan CEO Designate after CEO Gopinathan resigned in March 

Today's earnings report will be the IT giant's first since the company named K Krithivasan CEO Designate after CEO Rajesh Gopinathan stepped down last month. The outgoing CEO, Gopinathan, described his stint at TCS as wonderful, saying "there couldn't be a better time to move on" and that TCS has been built on pillars of "customer centricity and employees who have always committed and given their best to the company".

Gopinathan, who resigned just a year into his second five-year term at the top helm of the company, said that he would be available to Krithivasan "100 per cent" during the transition period. Under Gopinathan's leadership, TCS shares have nearly tripled in value and revenue almost doubled, as of December 2022.

K Krithivasan and CEO Rajesh Gopinathan | Image: TCS

Read more on key changes in the TCS management

TCS Results Today | Margin likely to improve by 30 bps in Q4 vs Q3 

TCS is likely to report a margin of 24.8 per cent for the quarter ended March 2023, as against 24.5 per cent for the last quarter of the calendar year 2022, according to Zee Business research. 

TCS Q4 Results Today | Dollar revenue likely to have grown 1.8% to $7,202 million vs previous quarter   

According to Zee Business research, TCS is likely to report growth of 1.8 per cent in revenue in dollar terms, to $7,202, on a quarter-on-quarter basis. 

What to expect from TCS Q4 results

TCS Results Today | Analysts expect Tata group IT major's Q4 profit to have grown nearly 7% to Rs 11,600 crore vs Q3  

According to Zee Business research, TCS is likely to report a net profit of Rs 11,600 crore for the January-March 2023 period, as against a net profit of Rs 10,846 crore for the previous three months. They estimate its revenue growth at 1.7 per cent sequentially to Rs 59,200 crore.

Read more on what to expect from TCS Q4 results

Indian IT Q4 Results | Analysts expect seasonality, global situation to result in weaker quarterly performance  

According to Zee Business research, the January-March 2023 is likely to be a slower quarter for the Indian IT sector owing to seasonality and the global environment. Here are some other expectations, as laid out by Zee Business analysts:    

• Tier I companies may fare better than their Tier II peers driven by strong execution 
• In terms of revenue growth in constant currency terms, Coforge, LTIMindtree, KPIT Tech likely to outshine the rest of the Indian IT space
• HCL Tech, Tech Mahindra may report slower growth
• Client budget, vendor consolation, BFSI sector, margin outlook to be in focus

Welcome to Zeebiz.com's blog on TCS Q4 results today as the Tata group IT giant prepares to kick off the corporate earnings season for India Inc

Follow this space to catch minute-by-minute LIVE updates on TCS results, the views of Zee Business Managing Editor Anil Singhvi and other experts, and much more, only on Zeebiz.com.