Record Deal Wins and Robust Margins Mark Strong Finish to TCS' FY24.
Highlights
FY 24 Order Book TCV[1] at all time high
Full Year Revenue
Growth led by
By verticals, Growth led by Energy, Resources and Utilities (+12.6%), Manufacturing (+7.3%), and Life Sciences & Healthcare (+4.8%)
Operating Margin at 24.6%*;
Net Income at
FY 2023-24: Annual Highlights
Q4 FY 2024: Quarterly Highlights
Client metrics:
62 clients in the
139 in the
Employee Metrics:
Employee Headcount: 601,546
Diversity: 152 nationalities; 35.6% women
IT Services Attrition (LTM): 12.5%
5 million competencies acquired
Number of Contextual Masters at 73,000
Free Cash Flow:
Shareholder payout of
Revenue at
Growth led by
Operating Margin: 26.0%; YoY expansion of 150 bps
Net Income:
Strong Cash conversion: Operating Cash Flow 100.4% of Net Income
Final Dividend per share (proposed): ?28
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.'
Q4 and Full Year Segment Highlights
Growth by Domain
Industries
Q4 FY23 (%)
Q4 FY24 (%)
Y-o-Y
CC Growth (%)
FY 2023 (%)
FY 2024 (%)
Y-o-Y
CC Growth (%)
BFSI
32.9
31.3
(3.2)
33.3
32.0
(1.0)
Consumer Business
16.0
15.7
(0.3)
16.0
15.8
1.8
Life Sciences & Healthcare
10.9
10.9
1.7
10.8
10.9
4.8
Manufacturing
8.1
8.8
9.7
8.2
8.6
7.3
Technology & Services
8.9
8.2
(5.6)
9.0
8.5
(2.3)
Communication & Media
7.1
6.6
(5.5)
7.2
6.8
(2.6)
Energy, Resources and Utilities
5.4
5.6
7.3
5.2
5.6
12.6
Regional Markets & Others
10.7
12.9
26.0
10.3
11.8
19.8
Total
100.0
100.0
2.2
100.0
100.0
3.4
Growth by Markets
Geography
Q4 FY23 (%)
Q4 FY24 (%)
Y-o-Y
CC Growth (%)
FY 2023 (%)
FY 2024 (%)
Y-o-Y
CC Growth (%)
52.4
50.0
(2.3)
53.4
51.1
(0.2)
1.8
2.0
9.8
1.8
2.0
12.4
15.7
16.8
6.2
15.0
16.5
10.1
Continental
15.1
14.6
(2.0)
14.9
14.9
0.7
8.0
7.8
5.2
8.0
7.8
4.5
5.0
6.7
37.9
5.0
5.6
20.2
MEA
2.0
2.1
10.7
1.9
2.1
14.4
Total
100.0
100.0
2.2
100.0
100.0
3.4
Services: In a challenging macro environment, clients are prioritizing initiatives that reduce cost, increase business agility, improve security posture and resilience.
Win themes across key deals involved Cloud Migration and Modernization, GenAI, Enterprise application services, Identity & Access Management, Connected Devices, Digital Workplace Services, Network Services and Vendor Consolidation.
AI.Cloud, Enterprise Solutions, IOT&DE and Cyber Security led the growth this quarter.
Analyst rankings: 80% leadership positions across all key service areas (Application Transformation, Consulting, AI & Analytics, Cloud, IoT & Digital Engineering, F&A, Procurement, Assurance, Enterprise Application Services, Security, Infrastructure).
AI.Cloud: During this quarter, we saw significant demand for Cloud, data platforms and Gen AI across industry segments. Clients are seeking to harness these technologies to reimagine customer experience, simplify their technology estate and transform their operating model. Clients continued to scale their experimentation with Gen AI and went live with an increasing number of use cases. We are progressing well on our mission to organically reskill our workforce on AI and Gen AI. TCS is a launch partner for the newly announced AWS Generative AI Competency. Our Responsible AI Framework for Azure has been launched in
Cyber Security: We saw continued growth momentum this quarter with good traction in Identity and Access Management (IAM), Governance Risk Compliance and Network Security and Platforms. We are expanding footprint across all client segments, with clients seeking an integrated services approach to enterprise security. We launched and saw good traction with our AI and Gen AI Security offerings. We continue to expand our domain focused offerings across industry segments.
Enterprise Solutions: During this quarter, we saw strong demand from clients for Enterprise Application Services. Clients continue to make significant investments in their digital core through an ERP led Transformation approach. There is also significant interest in enhancing user and customer experience through Low Code No Code applications. Our portfolio of offerings in SAP S/4HANA, Salesforce,
IoT & Digital Engineering: Strong growth was led by multiple transformation programs and demand for next generation solutions across connected plants, connected services and intelligent product engineering. Key services leading the growth were Factory of the Future, Electric Vehicles and Software Defined vehicles, Digital thread, Digital Twins and Medical Devices Engineering. IoT enabled connected devices and shop floor manufacturing are seeing greater adoption at scale, along with early pilots and adoption of Gen AI. Among industry groups, TSS, CBG, Manufacturing and LSHCERU saw greater traction.
Cognitive Business Operations: IT Infrastructure Services led the growth this quarter with strong deal wins powered by Cognix. Key themes were reimagining digital workplace services, transforming enterprise network infrastructure, and vendor consolidation. Clients also partnered with TCS for Business Process Services including first time outsourcing, agile and resilient supply chain operations, and transforming employee experience amongst others.
TCS Interactive: During this quarter clients partnered with TCS Interactive across a wide range of engagements including, relaunch of digital presence using design language, transform online channel experience, run E-Commerce command center, audit retail media network maturity, marketing agency and for Product engineering services. We also saw good traction with our unique Apple Vision Pro based immersive airline experience solution, TwinX (AI) enabled smart marketing concierge solution and immersive commerce solutions.
Key Highlights
Signed a strategic partnership with
Announced a 15-year expansion of partnership with Aviva, the
Enabled Euroclear Finland, the
Selected by
Signed an agreement with Nuuday,
Announced a strategic partnership with
Selected by
Ontario Teachers' Pension Plan (OTPP) has renewed its longstanding strategic relationship with TCS for IT managed services / transformation initiatives, solidifying the relationship between the two organizations. The decision to renew the partnership underscores the successful collaboration between OTPP and TCS, characterized by service transformation, reliability, and a shared commitment to excellence. With a focus on providing domain expertise, accelerating cloud migration, and driving automation initiatives, TCS is poised to continue supporting OTPP's strategic objectives and ensuring future success.
Extended partnership with
A leading
Expanded strategic partnership with easyJet, a leading European airline, to transform its IT operations landscape. TCS will establish an entirely new platform-based futuristic operating model, leverage cutting-edge technologies, deploy TCS solutions TCS Cognix, ignio AIOps to modernize the infrastructure and migrate the DC to the cloud to provide best-in-class services. This will improve operational agility, enhance competitiveness, drive sustainable growth and enable easyJet to provide the best possible travel experience to its customers.
Selected by
TCS has been selected as a strategic partner by the French entity of a Global Insurer to provide agility to the business by operating model transformation in Application development and maintenance. As part of the multi-year contract, TCS will bring its best-in-class agile delivery models which will help the Insurer's IT in strengthening the delivery to provide continuous value to business.
Brought our global network of
Partnered with
Customer Speak
'Connecting to T2S is critical to the growth and prosperity of the Finnish market. Our clients will benefit from more efficient processes and access to greater investment avenues, making
'Extending this strategic partnership will improve how we serve our customers, further simplify our operations and support our growth ambitions. It will allow us to rationalize our systems and improve efficiency, bringing significant benefits for our customers and the business.'
'When the decision was made to modernize our core as part of a long-term strategy, we looked extensively for a true partner. Given our shared commitment to technology and its role in the customer experience, TCS, with its TCS BaNCS product suite, was a natural choice for
'As the leading digital Nordic knowledge company, we continue to be at the forefront in developing new data-driven solutions and services that power society with intelligence. With its track record in the Nordics, TCS has been chosen as our trusted partner for business transformation. Working with TCS is key to achieving our long-term targets.'
Daniel Ejderberg, Chief Information Officer,
'The Pilot Pay platform is the culmination of a seamless collaboration with our pilot community and ALPA. Our relationship with TCS allowed us to address some of the core concerns related to the need for real-time visibility, accuracy, and transparency in pay. The intent was to build a future-ready, scalable solution that grows with us.'
'As the leading digital communications and connectivity provider in
'Our company has experienced remarkable growth, and we are determined to see this success forward. To continue our upward trajectory, we recognized the need for a trustworthy partner who can help us build a standardized, scalable IT platform that allows for innovation, and is agile enough to foster creativity. We are thrilled to have chosen TCS, a proven expert in large-scale complex digital transformations, for this global project. With TCS as our partner, we are confident in our ability to future-proof the business and continue to deliver the excellent services our customers expect.'
'easyJet chose TCS due to proven expertise in delivering large-scale digital transformations and the companies' strong cultural alignment. This extended partnership will help easyJet build a future-ready, platform-based technology architecture that fosters a culture of innovation and improves our digital agility-toward our goal of making travel easy and becoming the most loved airline in
Research and Innovation
As on
Human Resources
TCS' workforce stood at 601,546 as on
Year till date, TCSers have clocked 51 million learning hours, and acquired 5 million competencies. IT services' attrition was at 12.5% for the last twelve months.
Awards and Recognition
Business Awards
TCS Showcased a brand value gain of
Awarded Global Top Employer 2024, one of the 16 companies worldwide, by the
Featured by
Ranked first in Customer Satisfaction in
TCS internal tech team awarded the CIO 100 US Award 2024 by Foundry for the Machine-First SOC project.
TCS was ranked third in market share by
Recognized for leveraging the TCS Green and Connected Ecosystem Solution by
TCS' leadership program for women recognized in the
Recognized at ET NOW Best Organizations for Women Conclave 2024 for fostering inclusivity, gender diversity and sustainable growth.
Ranked second in the 2023 Burgundy Private Hurun India 500 list, highlighting the country's most valuable companies.
TCS awarded Pioneer Sustainable Development Action Recognition for its
Awarded the International Green Apple Award by the
Awarded Titan Business Awards &
Awarded the
Partner Awards
TCS recognized with 'Generative AI (GenAI) Competency' partner status by
Awarded Global Growth Partner of the Year 2023 by
Awarded the
Recognized in the AI for Business category-APAC by the 2024 IBM Partner Plus Awards
Industry Analyst Assessments
TCS was ranked a Leader in 37 competitive assessments published by leading research firms in Q4. In 9 of these, marked with an asterisk in the table below, TCS was positioned the foremost leader or ranked #1.
Analyst Firm
Firms Report Type
Report Title
PAC
Top 10
Top 10 IT Services Worldwide
Everest
PEAK Matrix
Software Product Engineering Services PEAK Matrix Assessment 2024
PAC
PAC Innovation RADAR
HFS
HFS Horizons
HFS Horizons: Manufacturing Intelligent Operations Services, 2024
Market Analysis
Industry 4.0 2024
RADAR
Life Sciences Digital Services 2024 RadarView
IDC
MarketScape
IDC MarketScape: Worldwide Life Sciences R&D Lab of the Future Technology Solutions and Consulting Services 2024 Vendor Assessment
NEAT
Property & Casualty Operations Transformation 2024
IDC
MarketScape
IDC MarketScape: Worldwide Higher Education Cloud Professional Services 2024 Vendor Assessment
RADAR
Airlines and Airports Digital Services 2024 RadarView
RADAR
Digital Commerce Services 2023-2024 RadarView
Everest
PEAK Matrix
Consumer Packaged Goods (CPG) IT Services PEAK Matrix Assessment 2024
Everest
PEAK Matrix
Retail IT Services PEAK Matrix Assessment 2024
IDC
MarketScape
IDC MarketScape: Worldwide Professional Services for Railways and Airlines 2024 Vendor Assessment*
Everest
PEAK Matrix
Financial Crime and Compliance (FCC) Operations Services PEAK Matrix Assessment 2024
HFS
HFS Horizons
HFS Horizons: The Best Service Providers for Asset and Wealth Management, 2024
NEAT
ESG Services in Banking 2024
Everest
PEAK Matrix
Marketing Services PEAK Matrix Assessment 2024
PAC
RADAR
Adobe-related Services in
Everest
PEAK Matrix
Application Transformation Services PEAK Matrix Assessment 2024 -
Everest
PEAK Matrix
Application Transformation Services PEAK Matrix Assessment 2024 -
Forrester
Wave
The Forrester Wave: Application Modernization And Migration Services, Q1 2024*
NEAT
Industry 4.0 - 2024*
Everest
PEAK Matrix
Pega Services PEAK Matrix Assessment 2024
PAC
RADAR
SAP Services in
NEAT
Cyber Resiliency 2024
Gartner
Magic Quadrant
Magic Quadrant for Outsourced Digital Workplace Services*
RADAR
Hybrid Enterprise Cloud Services 2023-2024 RadarView
RADAR
Intelligent Automation Services 2023-2024 RadarView
Everest
PEAK Matrix
Intelligent Process Automation (IPA) Solutions PEAK Matrix Assessment 2024
RADAR
F&A Business Process Transformation 2023-2024 RadarView
NEAT
Procurement Transformation 2024
HFS
HFS Horizons
HFS Horizons: Assuring the Generative Enterprise, 2024
IDC
MarketScape
IDC MarketScape Worldwide Application Modernization Services to Azure Vendor Assessment*
IDC
MarketScape
IDC MarketScape: Worldwide Application Modernization Services to
IDC
MarketScape
IDC MarketScape Worldwide Application Modernization Services to AWS Vendor Assessment*
IDC
MarketScape
IDC MarketScape:
*TCS rated #1 in the assessment.
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the year ended
(In millions of $, except per share data)
Year ended
Year ended
Ex Adj*
Reported
Revenue
27,927
29,080
29,080
Cost of revenue
16,884
17,335
17,335
Gross margin
11,043
11,745
11,745
SG & A expenses
4,329
4,587
4,702
Operating income
6,714
7,158
7,043
Other income (expense), net
332
451
441
Income before income taxes
7,046
7,609
7,484
Income taxes
1,808
1,963
1,919
Income after income taxes
5,238
5,646
5,565
Non-controlling interests
19
23
23
Net income
5,219
5,623
5,542
Earnings per share in $
1.43
1.54
1.52
*excludes settlement of legal claim
Consolidated Statements of Comprehensive Income
For the three-month periods ended
(In millions of $, except per share data)
Three-month periods ended
Three-month periods ended
Revenue
7,195
7,363
Cost of revenue
4,307
4,334
Gross margin
2,888
3,029
SG & A expenses
1,127
1,115
Operating income
1,761
1,914
Other income (expense), net
110
113
Income before income taxes
1,871
2,027
Income taxes
481
523
Income after income taxes
1,390
1,504
Non-controlling interests
5
8
Net income
1,385
1,496
Earnings per share in $
0.38
0.41
Consolidated Statements of Financial Position
As of
(In millions of $)
As of
2023
As of
2024
Assets
Property and equipment
1,410
1,346
Right-of-use Assets
919
946
Intangible assets and
593
539
Accounts Receivable
5,010
5,343
Unbilled Revenues
1,816
1,834
Invested Funds
6,058
5,633
Other current assets
805
1,092
Other non-current assets
1,117
1,083
Total Assets
17,728
17,816
Liabilities and Shareholders' Equity
Shareholders' Funds
11,252
11,104
Current liabilities
5,297
5,529
Non-current liabilities
1,082
1,082
Non-controlling interests
97
101
Total Liabilities
17,728
17,816
[1] Total Contract Value
[2] Year on Year
[3] Constant Currency
excludes the one-time charge of
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