India-based IT services provider Tata Consultancy Services Ltd (TCS) today reported revenue rose 2.2% on a constant currency basis in its fiscal fourth quarter ended 31 March 2024. On a reported basis in INR, revenue rose by 3.5%.

Revenue totalled INR 612.37 billion for the fourth quarter period.  According to Reuters, this missed analysts' expectation of INR 615.63 billion (USD 7.33 billion).

Full year revenue was up 6.8% on a reported basis and 3.4% on a constant currency basis.

The company said growth was led by India (+37.9%), UK (+6.2%), and manufacturing (+9.7%).

K Krithivasan, Chief Executive Officer and Managing Director, said, “We are very pleased to close Q4 and FY24 on a strong note with the highest ever order book and a 26% operating margin, validating the robustness of our business model and execution excellence. In an environment of global macro uncertainty, we are staying close to our customers and helping them execute on their core priorities with TCS’ portfolio of offerings, innovation capabilities and thought leadership.”

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said, “Our Q4 performance is robust, with broad based deal wins across industries and geographies. Our products and platforms business sparkled with the mega deal win at Aviva and emerging markets had another stellar growth quarter demonstrating the power of TCS’ diversified portfolio.”

The group noted employee headcount totalled 601,546 during the year.

Separately today, the Economic Times reported that a US citizen with over a decade of service at TCS has taken legal action against the tech giant, alleging discriminatory employment practices. Randy Devorin, 61, claims that TCS exhibits bias towards US H-1B visa-holder employees of Indian/South Asian origin while targeting older American workers for termination to make room for Indian nationals and "freshers". Devorin has demanded a jury trial to address these allegations of discrimination.

This lawsuit follows complaints filed by at least 22 workers with the Equal Employment Opportunity Commission (EEOC) since late December, according to the Wall Street Journal. These American professionals accused TCS of abruptly terminating their employment and replacing them with workers from India on H-1B visas.

In response to inquiries from Times of India (TOI), TCS stated that it is currently in a silent period and directed TOI to its previous response, where the company refuted allegations of engaging in unlawful discrimination, deeming them baseless and misleading.

Tata Consultancy Services shares closed at INR 4,001.40 (USD 47.93), up 0.42% on the day and 5.95% below its 52-week high of INR 4,254.75 (USD 50.96), set on 18 March 2024. The company has a market cap of INR 14.42 trillion (USD 172.75 billion).