Tata Consultancy Services today declared a final dividend of Rs 24 per share, taking its total dividend payout for the financial year 2022-23 to Rs 107 per share. TCS has already paid Rs 83 per share in dividend for the last fiscal year in three installments. “The Directors have recommended a Final Dividend of Rs 24 per Equity Share of Re 1 each of the Company which shall be paid/dispatched on the fourth day from the conclusion of the 28th Annual General Meeting, subject to approval of the shareholders of the Company,” TCS said in a stock exchange filing.
Earlier today, TCS reported its fiscal fourth quarter net profit at Rs 11,392 crore, up 5% from the previous quarter. TCS net profit missed Rs 11,562 crore net profit for Q4FY23 estimated by CNBCTV18 poll. TCS Revenue too fell a bit short of poll expectations, recording at Rs 59,162 crore in the fiscal fourth quarter, rising just about 1.6% from the previous quarter’s Rs 58,229 crore. Operating margin for the quarter was at 24.5 per cent and the net margin was at 19.3 per cent.
Where is TCS business growth coming from?
Banking, Financial Services, Insurance continued to be the biggest contributor to TCS business, with Rs 22,628 crore of revenue during January-March. In terms of growth, retail and Consumer packaged goods category led +13 per cent growth on-year, followed by +12.3 per cent on-year from Life Sciences and Healthcare, while other verticals grew in single digits. BFSI, which registered the highest revenue across verticals, grew 9.1 per cent.
In terms of regions, UK led the growth with 17 per cent rise, North America grew 9.6 per cent while Continental Europe grew 8.4 per cent. Among emerging markets, Latin America grew 15.1 per cent, India grew 13.4 per cent, Middle East & Africa grew 11.3 per cent and Asia Pacific grew 7.5 per cent during the quarter.
Strong order book; TCS adds $100 million+ customers
TCS recorded Total Contract Value (TCV) for Q4 at $10 billion with an all-time high number of large deals, while it did not disclose the actual number of deals. The TCV for FY23 order book was at $34.1 billion. TCS added two $100 million+ customers during the quarter taking the total to 60, Chief Executive Officer Rajesh Gopinathan said at the post-results press conference. “The strength of our order book demonstrates the resilience of demand for our services and gives us visibility for growth in the medium term,” he said.
This was Rajesh Gopinathan’s 25th and last quarter results presentation as the CEO of TCS. Gopinathan had resigned from the post on March 16, and the company board appointed K Krithivasan as the MD & CEO of TCS, effective June 1, 2023. Gopinathan said that he has ensured a smooth leadership transition over the next few months and said that “TCS is well positioned to capture the opportunities ahead.”