The board of TCS has also sanctioned a dividend of Rs 27 per share, inclusive of a special dividend of Rs 18 for the financial year 2023-2024.
On January 11, Tata Consultancy Services (TCS), India’s largest IT services company, reported a net profit attributable to shareholders of Rs 11,058 crore for the quarter ending December 31, 2023, marking a 2 percent increase from Rs 10,846 crore in the corresponding period of the previous year.
Despite facing challenges such as high furloughs in the BFSI and hi-tech sectors, along with a sustained deceleration in discretionary spending, the company achieved a marginal profit rise.
According to an exchange filing, consolidated revenue also saw a 4 percent growth, reaching Rs 60,583 crore in the three months ending December 31, up from Rs 58,229 crore in the same period a year earlier.
TCS noted an expansion in the EBIT margin (operating margin) to 25 percent, an improvement from 24.3 percent in the previous quarter.
TCS board also approved dividend of Rs 27 per share, including a special dividend of Rs 18 for the financial year 2023-2024.
Commenting on the performance, K Krithivasan, Chief Executive Officer and Managing Director, said: “Our strong performance in a seasonally weak quarter buffeted by macro-economic headwinds, demonstrates the strength of our business model with a well-diversified portfolio and a customer centric strategy. We are seeing strong deal momentum across markets resulting in a solid order book providing visibility into our long-term growth. We are seeing tremendous interest in Generative AI and are leading the innovation and exploratory efforts for our customers in this area.”
