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TCS Q4 results: Net profit rises 7% to Rs 9,926 cr, revenue up 16%, dividend declared

TCS Q4 results: Net profit rises 7% to Rs 9,926 cr, revenue up 16%, dividend declared

In terms of employee headcount, TCS witnessed a net addition of 35,209 employees, highest ever in a quarter.

TCS Q4 results TCS Q4 results

IT services major Tata Consultancy Services (TCS) on Monday reported 7.3 per cent year-on-year (YoY) increase in consolidated net profit for the quarter ending 31 March, 2022 at Rs 9,926 crore as more businesses across the world leaned on technology and related services to drive their operations.

The company had reported a net profit of Rs 9,246 crore in the year-ago period. 

Sequentially, the net profit increased marginally in Q4FY22 from Rs 9,769 crore in Q3FY22.

The company's revenue rose 16 per cent YoY to Rs 50,591 crore from Rs 43,706 crore in the corresponding period last fiscal, while banking and finance segment revenue rose 11.2 per cent to Rs 19,532 crore. The unit is the company's top revenue contributor.

The net profit would have crossed the five-digits-mark for the first time, had it not been for a trimmed margin that slipped by 1.89 per cent to 25 per cent, the company said.

Total income increased 15.5 per cent to Rs 51,572 crore from Rs 44,636 crore in the same period last year.

The company announced its highest-ever order book at $11.3 billion in Q4 while $34.6 billion in full year 2021-2022.

Its operating margin stood at 25 per cent while net margin came at 19.6 per cent.

Graphic credit: Mohsin Shaikh

TCS also announced final dividend of Rs 22 per equity share of rupee 1 each of the Company which shall be paid/dispatched on the fourth day from the conclusion of the 27th Annual General Meeting, subject to approval of the shareholders of the company.

Commenting on the financial results, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said,“We are closing FY22 on a strong note, with mid-teen growth and adding the maximum incremental revenue ever. Increasing participation in our customers’ growth and transformation journeys, and an all-time high order book provide a strong and sustainable foundation for continued growth ahead.”

In terms of employee headcount, TCS witnessed a net addition of 35,209 employees, highest ever in a quarter. However, it also added that IT services attrition continued to climb, reaching 17.4 per cent but incremental attrition has moderated. "The company’s philosophy of investing in people, and its progressive workplace policies have resulted in industry leading retention in an environment of increased churn," it added.

Milind Lakkad, Chief HR Officer, said: “With the highest-ever net addition this year, consistently highest talent retention, benchmark talent development metrics, continued focus on health and wellbeing and numerous industry awards, we have reaffirmed TCS’ position as the #1 employer of choice.”

Moreover, the company's incremental revenue in a year grew $3.533 billion, highest-ever, TCS stated.

Meanwhile, N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, added, “It is immensely satisfying to close the year with robust, broad-based growth, industry-leading margins and the highest ever order book. During the year, we took on technologically challenging, industry-first transformational programs and brought to bear the full power of TCS’ capabilities and that of our partner ecosystem, to successfully deliver market-changing outcomes. Our continued investments in building newer capabilities, our passion for innovation, our contextual knowledge and most importantly, our self-belief have been key to this, and these position us very well for continued success ahead.”

On Monday, the company's scrip on BSE closed 0.26 per cent lower at Rs 3,696.40 apiece. 

Published on: Apr 11, 2022, 5:48 PM IST
Posted by: Aparna Banerjea, Apr 11, 2022, 3:08 PM IST