TCS Starts FY2025 on a Strong Note with Broad-Based Growth

Mumbai: Tata Consultancy Services (TCS) concluded the Financial Year 2023 with resilient demand and a strong order book. The order book for the financial year stood at $34. 1 billion and $10 billion for the quarter. The IT services giant ended the year by recording a constant currency growth of 13.7%.

Amid global headwinds exacerbated by the ongoing banking crisis, TCS recorded $27,927 million in the year ending March 31, a rise of 8.6%. The growth in North American markets continued to be resilient at 15.3% on a full-year basis. UK grew 15% and Continental Europe grew 11%. In emerging markets, Latin America grew 17.3%, India grew 14.6%, the Middle East & Africa grew 7.8% and Asia Pacific grew 7.6%.

The growth in the fourth quarter was led by the UK market which grew 17%. North America grew 9.6% while Continental Europe grew 8.4%. Among emerging markets, Latin America grew 15.1%, India grew 13.4%, the Middle East & Africa grew 11.3% and Asia Pacific grew 7.5%.

“UK market has reconciled to the operating environment. We are the largest service providers in the UK. It is a great story about technology being part of a solution. What you see in the UK market will play out in other markets as well," said Rajesh Gopinathan, managing director and chief executive officer, of TCS. Gopinathan will hand over the reins to CEO designate Krithi Krithivasan on June 1, 2023.

The Retail and CPG business led the growth through the year at 19.7% followed by Communication & Media at 14%. All other verticals showed growth in a narrow band around the company average.

On the ongoing banking crisis, the management said that it was a sentiment issue rather than a structural crisis. “There is no comparison to the 2008 crisis. At the time we were feeling like the sky was falling. Now only one or two banks are falling. We don’t see a banking crisis. The government, too, has stepped in. It’s more of a sentiment issue”, said Krithivasan.

The management also said that while clients were being cautious, there had been no deal cancellations or indications of a major cutback on technology spending.

Chief Operating Officer N Ganapathy Subramaniam, said that clients were enthusiastic about the applications of generative AI such as Chat GPT. “TCS pioneered the quality matrix delivery excellence model. Over the last 3-4 decades we have collected enormous data on our delivery performance and delivery matrix in evolving technologies and emerging technologies. We are working on how we apply machine learning and deep learning to that data to raise the bar in our delivery capability and improve the quality of experience for our clients,” said Subramaniam.

On the HR front, attrition continued to drop. The quarterly attrition was down 4%.

“We are honouring all job offers and have added 22,600 employees on a net basis in FY 23. During the year, we onboarded over 44,000 freshers and our highest-ever number of experienced professionals. We also doubled down on organic talent development, obtaining over 53,000 cloud certifications during the year, bringing the total to over 110,000 employees certified on hyper scaler platforms. This places us among the top 2 partners for the largest cloud providers,” said Milind Lakkad, Chief Human Resources Officer.

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TCS is here to make a difference through technology.

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TCS works hand in hand with world-leading investors.

TCS Records Resilient Demand in Fy23, Marches Into Fy24 With a Strong Order Book

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TCS is here to make a difference through technology.

We’re in it for good, driving positive change for the benefit of all.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

Recent News

Recent recognitions

Upcoming events

TCS works hand in hand with world-leading investors.

Q4 FY23 in 100 seconds

Q4 in numbers

Overview

Business and Service Verticals

Key Geographies

Highlights

Our year in numbers

Revenue Growth

Key Verticals

Key Geographies

Highlights

Subscribe to our investor updates

Learn more about TCS

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