Tata Consultancy Services (TCS) has recently disclosed its fourth-quarter results for the fiscal year 2024, showing a noteworthy 9% growth in net profit. In the January-March quarter alone, the Indian IT behemoth reported a net profit of Rs 12,434 crore. Over the entire fiscal year, TCS saw its net profit surge by 9% to a total of Rs 45,908 crore, accompanied by a rise in revenue from Rs 2,25,458 crore to Rs 2,40,893 crore year-on-year.
During discussions on the company’s performance, N G Subramanian, the Chief Operating Officer (COO) of TCS, touched upon several key areas. He noted the impact of discretionary spending constraints at client organizations, which affected revenues, while spending on non-discretionary items remained steady. Subramanian highlighted the robust order pipeline, revealing that new orders reached a record high of $13.2 billion for the quarter. He emphasized that a significant portion of these deals are of lower value and short-term in nature, aligning with the company’s strategy in the current market landscape.
On the topic of generative artificial intelligence (AI), Subramanian highlighted its integration into nearly every contract the company signs, underscoring its growing importance across industries.
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Turning to TCS’s Chief Executive Officer (CEO) and Managing Director, K Krithivasan, he shed light on the company’s engagement in 200 projects of varying sizes and use-cases centered on Gen AI technology. Krithivasan disclosed that TCS has a pipeline of exclusive Gen AI deals valued at $900 million, showcasing the firm’s commitment to leveraging cutting-edge technologies.
When questioned about pricing pressures, CEO Krithivasan remained optimistic, stating that TCS has successfully maintained deal pricing stability despite market challenges. While acknowledging competitive influences on pricing, he expressed confidence that TCS would not face significant pricing pressures, given the stability observed in deal prices amid high inflation rates.
The insights provided by TCS’s leadership offer a glimpse into the company’s resilience and strategic focus amidst a dynamic business landscape. As TCS continues to navigate challenges and pursue opportunities, its steadfast performance underscores its position as a leader in the global IT services sector.
