Due to weaker-than-expected mood and spending in its core markets and verticals, North America and banking, financial services & insurance (BFSI), TCS's results for the March quarter were below expectations. This tested its resiliency in a difficult financial environment.
TCS missed the boat on the sequential sales and margin performances as its revenue increased modestly (0. 6% in constant currency) during the quarter compared to the prior one. Constant currency revenue increased by 10.7% year over year to $7. 1 billion. Comparing the March quarter to the December one, operating margins remained constant at 24.5%.
For the full year, TCS’s revenue grew 13. 7% to $27. 9 billion, and growth was led by North America that grew 15. 3% and the UK at 15%. Its operating margins dropped 120 basis points (100bps = 1 percentage point) to 24. 1% in the 2022-23 financial year. TCS added 821 employees in the March quarter, one of the lowest net additions in recent times. For the 2022-23 financial year, it added 22,600 people, taking the total headcount to over 600,000 employees. TCS cut attrition to 20. 1% in the March quarter compared to 21. 3% in the preceding one.