TCS reports strong growth in Q3 FY24 amid economic headwinds
Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions, reported its consolidated financial results for the quarter ending December 31, 2023 (Q3 FY24). The company experienced a revenue of $7.28 billion, marking a 2.9% year-over-year (YoY) increase and a 1.7% YoY rise in constant currency terms. Notably, TCS’s operating margin expanded by 0.5% YoY to 25%, and its net income rose to $1.41 billion, a 7% YoY increase, showcasing the company’s strong financial health and operational efficiency.
The quarter’s highlights include a net cash flow from operations at $1.36 billion, which is 102% of the net income. TCS’s commitment to a diverse and inclusive workplace is evident with 35.7% women in its workforce, encompassing 153 nationalities. The company has also invested significantly in its workforce, with 39.7 million learning hours and 3.7 million competencies acquired year-to-date. A notable mention is the company’s dividend per share at ₹27.00, including a ₹18.00 special dividend.
TCS Q3 FY24 results : Tata Consultancy Services Achieves Significant Growth in Challenging Market
CEO and MD K Krithivasan commented on the performance, highlighting TCS’s diversified portfolio and customer-centric strategy as key drivers of success amid macro-economic challenges. The company is witnessing strong deal momentum and interest in generative AI, positioning it at the forefront of innovation.
COO N Ganapathy Subramaniam emphasized TCS’s significant progress in national projects and its strong quarter in products and platforms, particularly mentioning the MCX platform and the BSNL 4G/5G network rollout. CFO Samir Seksaria attributed the strong margin improvement to disciplined execution and operational rigor.
TCS saw varied growth across industries, with notable increases in the Energy, Resources, and Utilities vertical. Major markets showed mixed performance, with the UK leading growth. Service lines like AI.Cloud, Cyber Security, and Cognitive Business Operations led the growth, underscoring TCS’s focus on cutting-edge technologies and client-centric services.