Tata Consultancy Services Ltd Share Price – NSE  /  BSE

IT - Software, Mid Cap

Tata Consultancy Services has entered into a strategic partnership with Amazon Web Services (AWS) to accelerate its customers' cloud transformation journey at scale. This new strategic transformation agreement with AWS will enable TCS to facilitate full-stack digital transformation of its customers by leveraging data and generative artificial intelligence (AI) solutions on AWS.

Through this multi-year tie-up, TCS will provide its customers with tools to create modern architectures, deliver business value using state-of-the-art cloud-native capabilities and drive modernization at scale. These include a clear cloud modernization roadmap, access to modernization platforms and tools, exclusive investment models and technology betas, and proof-of-concept (POC) projects. The customers selected for this program are globally distributed across all verticals, particularly within banking and financial services, life sciences, healthcare, travel, transportation, hospitality, manufacturing, automotive, and communications and telecom.

While cloud modernization can lend organizations next-gen capabilities, they are comprehensive and require converting, rewriting, or porting legacy systems to modern technology platforms. The initiative by TCS and AWS is focused on removing these barriers and realizing faster time-to-value. It offers customers a unique opportunity to leverage AWS's cutting-edge technologies and TCS' contextual knowledge and ability to build branded intellectual property (IP) on AWS. TCS is uniquely positioned to lead large-scale continuous modernization with a deep understanding of customers' domains. This includes significant investment in industry platforms. As part of this collaboration, AWS will support TCS in upskilling and certifying 25,000 members of its workforce on AWS, creating a modernization champion team with modernization specialists.

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Tata Consultancy Services announced a new delivery center in Londrina, Paraná, Brazil. This new center will create more than 1,600 new job opportunities over the next five years, contribute to the local economy and strengthen TCS' presence in the region.

Present in Londrina since 2018, TCS employs around 1,700 people in the city. The new centralized campus will bring the city workforce under one roof, creating a vibrant hub for collaboration and innovation in Londrina. The delivery center will specialize in key areas such as Business Transformation, Artificial Intelligence, and Cognitive Business Operations, offering a comprehensive suite of IT services to clients in Brazil and around the world.

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Revenue from operations increased 1.08% QoQ to Rs 61,237 crore in Q4 FY24.

On year on year basis, the company’s net profit rose 9% YoY and revenue from operations 3.51% in Q3 FY24.

During the quarter, constant currency revenue increased 2.2% YoY, operating margin expanded by 150 basis points (bps) to 26%. Net margin expanded by 100 bps to 20.3% YoY in Q4 FY24.

Profit before tax stood at Rs 61,849 crore in Q4 FY24, steeply higher than Rs 14,829 crore in Q3 FY24.

The company's order book total contract value (TCV) stood at $13.2 billion as on 31 March 2024 and operating cash flow was 100.4% of net income in Q4 FY24.

The IT giant said that its growth in Q4 was led by BFSI which jumped by 32.9% YoY, consumer business grew 16% YoY, Life Sciences & Healthcare increased by 10.9%, Manufacturing which grew 8.1% YoY, Technology & Services grew by 8.9% YoY, Communication & media grew by 7.1% YoY, Energy, resources and utilities grew 5.4% YoY while regional markets & Others increased 10.7%.

Among major markets, North America led with 52.4% growth, Latin America grew 1.8% YoY, UK and Continental Europe led by 15.7% and 15.1% growth while Asia Pacific grew 8%, India increased 5% and MEA (Middle East and North Africa) grew 2%.

TCS' workforce stood at 601,546 as on 31 March 2024. IT services' attrition was at 12.5% for the last twelve months.

In financial year 2023-2024, the company’s net profit jumped 8.92% to Rs 45,908 crore in FY24 as compared with Rs 42,147 crore in FY23. Revenue from operations increased 6.85% YoY to Rs 2,40,893 crore in FY24.

The board has declared a final dividend of Rs 28 which shall be paid on the fourth day from the conclusion of annual general meeting.

K Krithivasan, chief executive officer and managing director, said: “We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence. In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership.”

N Ganapathy Subramaniam, chief operating officer and executive director, said: “Our Q4 performance is robust, with broad based deal wins across industries and geographies. Our products and platforms business sparkled with the mega deal win at Aviva and emerging markets had another stellar growth quarter demonstrating the power of TCS’ diversified portfolio.”

TCS is an IT services, consulting and business solutions organization. It offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions.

The scrip rose 0.47% to Rs 4019.20 on the BSE.

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Tata Consultancy Services announced that the Board of Directors of the Company at its meeting held on 12 April 2024, has recommended a Final dividend of Rs.28 per share (i.e.2800%), subject to the approval of the shareholders.

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