Despite global volatility in FY22-23, Tata Consultancy Services (TCS) thrived with 17.6 per cent revenue growth exceeding Rs 2.25 trillion and a leading 24 per cent operating margin surge. Its order book expanded robustly. As part of India's largest multinational business group, TCS boasted a workforce of 614,000 consultants across 55 nations. It achieved consolidated revenues of $27.9 billion in FY23.
Furthermore, TCS's forward momentum extended to its order book, which continued to expand at a healthy pace throughout FY23, reflecting the trust and confidence placed in its capabilities by clients worldwide.
In FY23, TCS said it was significantly investing in building AI capabilities which included products and platforms that were AI-powered. Over the last few years, TCS said it has leveraged partnerships to design and orchestrate a completely indigenous software-defined 4G/5G network stack. 5G technologies along with IoT, Edge and AI will enable new digital transformation opportunities across industries, both industrial and consumer.
In FY23, the company said it broke out of the vicious cycle of hiring and counter-hiring within the industry by investing in onboarding an unprecedented number of fresh engineers - over 110,000 in FY 2022 and over 44,000 in FY 2023 - and training them on the technologies most in demand. In FY 2023, TCS focused on utilising the spare capacity built up in the prior year, and recalibrated its hiring especially as attrition started falling in the second half of the year. The company's LTM attrition in IT services for FY23 was 20.1 per cent. Net addition in FY 2023 was 22,600, and the closing headcount was 6,14,795. The company stated that its workforce continued to be very diverse, with over 150 nationalities represented and with women making up 35.7 per cent of the employee base. The company's investments in organic talent development continued to deliver exceptional outcomes. In FY 2023, TCSers logged 48.3 million learning hours, and acquired nearly 6 million competencies, the company stated.
Performance Review
TCS's revenue for the year was Rs 225,458 crore, a growth of 17.6 per cent over the prior year (13.7 per cent in constant currency). According to the company, this growth came with an industry-leading operating margin of 24.1 per cent while the company's net margin was at 18.7 per cent. The earnings per share was Rs 115.19, a growth of 11.2 per cent over the prior year. From an industry vertical perspective, growth in FY23 for TCS was led by its retail and consumer business, which grew 22 per cent. The company's life sciences and healthcare businesses also witnessed over 20 per cent growth over the previous year while its communications, media and technology verticals saw a growth of 18 per cent. The banking, financial services and insurance businesses grew at 14.6 per cent.
In terms of geographic markets, North America surged 24.2 per cent, UK 11.4 per cent, and Continental Europe 9.2 per cent. Latin America witnessed a growth of nearly 25 per cent, while India saw a 15 per cent increase.
Caring for Communities
In FY 2023, TCS estimates that its community initiatives touched the lives of over 4.5 million beneficiaries - women, youth and members of marginalised communities. TCS said it brought down its absolute carbon footprint across Scope 1 and Scope 2 emissions by 71 per cent over base year 2016, meeting its target two years ahead of time.
