TCS Reports 8.2% Profit Growth, Led by Emerging Markets, India

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TCS Reports 8.2% Profit Growth, Led by Emerging Markets

India’s largest software exporter, TCS, announced an impressive 8.2% growth in net profit for the December quarter, reaching Rs 11,735 crore. This growth was driven by strong double-digit growth in emerging markets, with India leading the way. TCS also reported a 4% increase in revenue for the quarter, amounting to Rs 60,583 crore.

The company’s performance was particularly robust in the energy, resources, and utilities sector, which witnessed an 11.8% growth. Manufacturing also saw a significant increase of 7%, while the life sciences and healthcare sector grew by 3.1%. On the other hand, the consumer business group reported a slight decline of 0.3%, while the BFSI sector experienced a 3% decrease. Communications and media saw a dip of 4.9%, and technology and services declined by 5.0%. Regional markets, however, showed substantial growth of 19.2%.

TCS attributed its success to its well-diversified portfolio and customer-centric strategy. The company’s CEO-MD, K Krithivasan, expressed confidence in their business model, which has provided them resilience during a seasonally weak quarter with macro-economic headwinds. He also highlighted the strong deal momentum across markets, leading to a solid order book that ensures long-term growth.

TCS has been actively exploring the potential of Generative AI, leading to tremendous interest from its customers. The company spearheads innovation and exploration in this area, aiming to deliver cutting-edge solutions to its clients.

From an operational standpoint, TCS reported improved operating margins, which rose by 50 bps to 25%. Net margin stood at 19.4%. The company’s order book currently stands at $8.1 billion, showcasing its positive performance and bright outlook.

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N Ganapathy Subramaniam, the COO and ED of TCS, highlighted the company’s impactful contribution to projects of national importance and its execution strength. TCS’s products and platforms also had a successful quarter, witnessing new wins and go-lives. The MCX platform, specifically, has scaled well, processing record transaction volumes. TCS is also making significant progress in upskilling its employees in Generative AI through its AI playground platform.

TCS boasts a diverse workforce, with women comprising 35.7% of its employees. As of December 31, the company had a total workforce of over 603,000 employees. Additionally, TCSers have clocked an impressive 39.7 million learning hours and acquired 3.7 million competencies, including 515,000 high-demand skills.

Samir Seksaria, the CFO of TCS, highlighted the company’s disciplined execution and operational rigor, which drove strong improvement in margins despite seasonal headwinds. He emphasized the importance of strategic investments in people, innovation, and infrastructure to differentiate TCS and create long-term value for stakeholders.

TCS experienced an attrition rate of 13.3% for the last 12 months in its IT services division. The company has already commenced its campus hiring process for the upcoming year, and its chief HR officer, Milind Lakkad, expressed hope that TCS would return to its normal operating mode by the end of the current fiscal year.

In conclusion, TCS’s strong financial performance in the December quarter, supported by robust growth in emerging markets, has showcased the company’s resilience despite challenging economic conditions. With a well-diversified portfolio, a customer-centric approach, and a focus on innovation, TCS is well-positioned for continued success in the global software services industry.

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Note: The information provided in this article is based on TCS’s official announcement and financial statements.

Frequently Asked Questions (FAQs) Related to the Above News

What was TCS's net profit growth for the December quarter?

TCS reported an impressive 8.2% growth in net profit for the December quarter, reaching Rs 11,735 crore.

What factors contributed to TCS's profit growth?

TCS's profit growth was driven by strong double-digit growth in emerging markets, with India leading the way.

How much did TCS's revenue increase for the quarter?

TCS reported a 4% increase in revenue for the quarter, amounting to Rs 60,583 crore.

Which sectors showed significant growth for TCS?

TCS experienced significant growth in the energy, resources, and utilities sector, as well as manufacturing and life sciences and healthcare.

Which sectors saw a decline in TCS's performance?

TCS saw declines in the consumer business group, the BFSI sector, communications and media, and technology and services.

How did TCS attribute its success?

TCS attributed its success to its well-diversified portfolio and customer-centric strategy.

What did TCS's CEO-MD highlight about the company's business model?

TCS's CEO-MD expressed confidence in their business model, which provided resilience during a seasonally weak quarter with macro-economic headwinds.

What is TCS's order book currently standing at?

TCS's order book currently stands at $8.1 billion, showcasing its positive performance and bright outlook.

How has TCS been exploring Generative AI?

TCS has been actively exploring the potential of Generative AI and has seen tremendous interest from its customers. The company aims to deliver cutting-edge solutions in this area.

What was TCS's operating margin and net margin for the quarter?

TCS reported improved operating margins, which rose by 50 bps to 25%. The net margin stood at 19.4%.

What contribution did TCS make to projects of national importance?

TCS's COO and ED highlighted the company's impactful contribution to projects of national importance and its execution strength.

What percentage of TCS's workforce comprises women?

Women comprise 35.7% of TCS's workforce.

How many employees does TCS have?

As of December 31, TCS had a total workforce of over 603,000 employees.

What was TCS's attrition rate for its IT services division?

TCS experienced an attrition rate of 13.3% for the last 12 months in its IT services division.

How does TCS plan to address its attrition rate?

TCS has already commenced its campus hiring process for the upcoming year and hopes to return to normal operating mode by the end of the current fiscal year.

What did TCS's CFO emphasize regarding the company's performance?

TCS's CFO emphasized the company's disciplined execution and operational rigor, which drove strong improvement in margins despite seasonal headwinds.

How many learning hours have TCSers clocked?

TCSers have clocked an impressive 39.7 million learning hours.

How many competencies have TCSers acquired?

TCSers have acquired 3.7 million competencies, including 515,000 high-demand skills.

How is TCS positioned in the global software services industry?

With a well-diversified portfolio, a customer-centric approach, and a focus on innovation, TCS is well-positioned for continued success in the global software services industry.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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