Tata Consultancy Services (TCS) has revealed that its revenue rose 3.9 percent during April-June quarter of 2024 to $7.51 billion as enterprises started spending on technology.
TCS has disclosed that its revenue dropped significantly in North America. The sales revenue contributed by enterprise clients in North America dropped to 49.5 percent of its total sales vs 52 percent.
Other regions and their revenue contributions: Latin America (1.9 percent), UK (16.9 percent), Continental Europe (14.4 percent), Asia Pacific including China and Japan (7.8 percent), India (7.5 percent) and the Middle East and Africa (2 percent).
TCS indicated that India has contributed sales revenue of $563.25 million, showing TCS is one of the major IT service providers for local enterprises.
Growth in technology spending was led by Manufacturing (+9.4 percent), Energy, Resources & Utilities (+5.7 percent), and Life Sciences & Healthcare (+4.0 percent).
TCS has generated 30.9 percent of its sales reveue from BFSI, 15.4 percent from Consumer Business, 11 percent from Life Sciences and Healthcare, 8.8 percent from Manufacturing, 8.1 percent from Technology Services, 6.2 percent from Communication and Media, 5.6 percent from Energy, Resources and Utilities and 14 percent from Regional Markets.
TCS said its workforce stood at 606,998 as on June 30th as it added 5,452 employees during the quarter. The employee base is very diverse, with 35.5 percent women and with 151 nationalities. TCSers have clocked 11 million learning hours and acquired 1.2 million competencies. TCS said IT services’ attrition was at 12.1 percent for the last twelve months.
K Krithivasan, Chief Executive Officer and Managing Director of TCS, said: “We are continuing to expand our client relationships, create new capabilities in emerging technologies and invest in innovation, including a new AI-focused TCS PacePort in France, IoT lab in the US and expanding our delivery centers in Latin America, Canada and Europe.”
“TCS’s financial results show a moderate QoQ growth of 2.2%, and the company is expected to continue its steady growth. TCS demonstrates vision in its approach to assisting clients with the future of industries and work,” Biswajit Maity, senior Principal Analyst at Gartner, said.
In mid-2023, TCS underwent an organizational restructuring, reverting to its previous structure focused on verticals and industries. The new operating structure regrouped their existing industry solutions units (ISUs) along industry segments into key business groups, emphasizing TCS’s commitment to client-centricity.
In addition, TCS has the capability of making future investments to grow its roadmap to provide better customer experience to its clients. It has also increased its focus on GenAI. These attributes have enabled TCS to grow and establish itself as a strong partner.
Baburajan Kizhakedath
