The financial performance of the country’s largest IT company Tata Consultancy Services (TCS) took a hit in the fourth quarter of FY2023 due to the slow pace of recovery in the core business region of North America. The company’s management said that they expected business to return to track in the sector but it could not happen.
The company’s net profit grew 14.8 per cent year-on-year to Rs 11,392 crore in the quarter that ended March 31, 2023. While on a quarterly basis, it registered an increase of 5 percent. The company’s revenue grew 16.9 per cent to Rs 59,162 crore during the quarter.
On a sequential basis, revenue registered a growth of just 0.6 per cent on a constant currency basis. On a sequential basis, revenue growth during the quarter was the slowest in the last 11 quarters.
The company’s fourth-quarter performance on the revenue growth front was below Bloomberg’s estimates but on the profit front, its performance was in line with expectations. Bloomberg had projected revenue of Rs 59,410 crore. TCS beat estimates with a profit of Rs 11,533 crore.
The company said in a statement that K Krithivasan will formally take over as the Chief Executive Officer and Managing Director from June 1. He will replace Rajesh Gopinath. Krithivasan was named to the post of CEO and MD in mid-March 16.