TCS Shares Dip Post 1% Gain on Q4 Results

The IT services giant posted a 9% increase in net profit at Rs 12,434 crore in the January-March quarter of FY24, attributed to strong domestic business despite challenges in the company’s core international markets. This news caused shares of Tata Consultancy Services (TCS) to rise by more than 1.50 percent on Monday. On the BSE, the stock increased 1.56% to Rs 4,063.

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Amidst the stock’s surge, its market valuation surged by Rs 7,489.44 crore to Rs 14,54,832.99 crore. Friday’s after-market hours saw the announcement of the company’s profits.

The Tata Group company’s net profit increased by 9% to Rs 45,908 crore over the course of the fiscal year, while revenue increased to Rs 2,40,893 crore from Rs 2,25,458 crore the previous year.

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Contrasting Regional Performances: NA and Europe Down, Domestic Soars

Geographically speaking, the largest market, North America, saw a 2.3% decrease in sales during the most recent January–March period, while continental Europe, the third largest, saw a 2.3% decline in revenue.

Nonetheless, the company’s domestic sector contributed to a nearly 38% increase in revenues during the quarter, enabling it to achieve a 3.5% growth in revenues to Rs 61,237 crore.

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TCS CEO Foresees Growth Resurgence Despite North American Uncertainties

K Krithivasan, the managing director and chief executive of TCS, told reporters that uncertainty is impeding growth in North America and the largest industry of banking, financial services, and insurance. However, he conveyed confidence that things are stabilising and growth will eventually resume.

“When growth will resume is difficult to predict… However, FY25 will surpass FY24, stated Krithivasan, who added that while he is not unhappy with the performance, he would have preferred an extra growth of up to one percentage point.

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