TCS FY21 net profit rises 0.27% to Rs 32,430 cr; revenue rises to Rs 1.64 lakh cr

Tata Consultancy Services (TCS) posted a 0.27 per cent increase on annual basis in consolidated net profit for the financial year ended March 31, 2021 at Rs 32,430 crore. The IT bellwether had recorded a net profit of Rs 32,340 crore in the previous financial year, the company said in a stock exchange filing on Monday.

TCS registered revenue from operations at Rs 164,177 crore during FY21, up 4.6 per cent from Rs 156,949 crore in FY20. Operating margin for the fiscal stood at 25.9 per cent, whereas net margin was 20.3 per cent. Order book at the the end of financial year 2020-21 stood at $31.6 billion, up 17.1 per cent YoY.

As for the March quarter of FY21, the company reported a 14.9 per cent increase in consolidated net profit to Rs 9,246 crore from Rs 8,049 crore in the year-ago period. Revenue grew 9.4 per cent YoY to Rs 43,705 crore from Rs 39,946 crore. Order book for the quarter was $9.2 billion, amounting to highest ever TCV in a quarter, TCS said.

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"All verticals showed good sequential growth, but a couple continue to lag prior year level - BFSI (+7 per cent QoQ, +13.3 per cent YoY), Retail and CPG (+4 per cent QoQ, -0.9 per cent YoY), Life Sciences and Healthcare (+3.8 per cent QoQ, +19.3 per cent YoY), Manufacturing (+3.9 per cent QoQ, +1.3 per cent YoY), Technology and Services (+2.8 per cent QoQ, +3.9 per cent YoY) and Communications and Media (+1.8 per cent QoQ, -4 per cent YoY). On a full year basis, Life Sciences and Healthcare (+17.1 per cent), BFSI (+2.4 per cent) and Technology and Services (+0.2 per cent) showed growth while the rest continue to be below prior year levels," TCS said.

Meanwhile, growth was led by major market during March quarter. "Growth was led by major markets - Continental Europe (+8.5 per cent QoQ, +11.7 per cent YoY), North America (+3.9 per cent QoQ, +5.9 per cent YoY), and UK (+3.4 per cent QoQ, +1 per cent YoY). Other markets grew well: Middle East & Africa (+4.2 per cent QoQ, +10.6 per cent YoY), India (+2.8 per cent QoQ, +11.2 per cent YoY), Latin America (+2.5 per cent QoQ, +1.5 per cent YoY), and Asia Pacific (+1 per cent QoQ, +1.5 per cent YoY). On a full year basis, with the exception of Continental Europe which grew +5.5 per cent, all other markets continue to be in negative territory compared to the prior year," the company further said.

"Our investments over the last decade in building newer capabilities, and in research and innovation, position us well for the multi-year technology services opportunity ahead. While we continue to dominate in our traditional areas of strength, we are making good progress in gaining share in the growth and transformation opportunity," said TCS CEO Rajesh Gopinathan.

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"Our focus going into FY22 will be to engage with clients in their growth agenda, propelled by innovation and leverage of collective knowledge," he added.

The company also declared a final dividend of Rs 15 per equity share for FY21. "The Directors have recommended a Final Dividend of Rs 15 per equity share of Rs l each of the company which shall be paid/dispatched on the fourth day from the conclusion of the Annual General Meeting, subject to approval of the shareholders of the company," TCS said in its filing.

TCS also stated that it has returned Rs 30,664 crore to shareholders via buybacks and dividends during FY21.

The board of directors also appointed Samir Seksaria as Chief Financial Officer, effective May 1, 2021. Seksaria will take over from V Ramakrishnan who will retire from the office on April 30, 2021.

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(Edited by Vivek Punj)