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TCS closes FY22 with record high order book: Here are 10 key takeaways from results

TCS has added 10 clients in the $100 million+ bucket, and 19 clients in the $50 million+ category, while there was addition of 40 clients in the $20 million+ bucket and 52 clients in the $10 million+ category.

April 12, 2022 / 06:18 AM IST
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Tata Consultancy Services (TCS), the country’s largest IT company, has closed 2021-22 on a strong note with an all-time-high order book with revenue as well as profit growth in double digits.

Here are 10 key takeaways from financial results:

1) Bottom line

The IT services provider recorded a profit of Rs 9,926 crore for the quarter ended March 2022, a 7.4 percent growth over the year-ago period, while in the financial year, profit at Rs 38,327 crore was up 14.8 percent compared to a year earlier with healthy revenue growth and a strong order book.

2) Top line

Revenue during the March 2022 quarter increased by 15.8 percent year-on-year to Rs 50,591 crore, while revenue growth in constant currency terms was 14.3 percent on an annualised basis.

The top line for the financial year at Rs 1,91,754 crore rose 16.8 percent over the previous year, and the same in constant currency terms grew 15.4 percent.

3) Order book

The company recorded its highest-ever order book TCV (total contract value) of $11.3 billion in Q4FY22 and the full-year order book stood at $34.6 billion.

4) CEO & MD says

“We are closing FY22 on a strong note, with mid-teen growth and adding the maximum incremental revenue ever,” chief executive officer and managing director Rajesh Gopinathan said.

“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,” he added.

5) Verticals growth

TCS said all verticals in Q4FY22 grew in the mid to high teens. “Growth was led by retail and CPG (consumer packaged goods, up 22.1 percent year-on-year), manufacturing vertical (up 19 percent) and communications and media (up 18.7 percent). Technology and services grew (up 18 percent) and life sciences and healthcare increased (up 16.4 percent) while BFSI (banking, financial services and insurance) grew (up 12.9 percent),” the company said in a statement.

During FY22, growth was led by retail and CPG which registered a 20.6 percent increase, manufacturing (up 19.4 percent), life sciences and healthcare (up 19.2 percent).

The BFSI segment in the full year grew 16.7 percent, the technology and services vertical registered a 15.8 percent growth, and the communications and media segment grew 14 percent over the previous year.

6) Markets and services

Growth among markets was led by North America which grew 18.7 percent year-on-year, UK which registered a 13 percent growth, and Continental Europe which clocked 10.1 percent growth in the March 2022 quarter. Among emerging markets, Latin America reported 20.6 percent on-year growth, Middle East & Africa grew 7.3 percent, India posted 7 percent growth and Asia Pacific grew 5.5 percent compared to corresponding quarter in the previous fiscal.

For all of 2021-22, among major markets, North America, Continental Europe, UK, Latin America, India, and Middle East & Africa registered double-digit growth in the range of 12.9-18.2 percent, while revenue from Asia Pacific grew 6.7 percent.

In the services space, TCS said demand continued to be strong during the quarter as well as the full year across all markets, industries and services, with growth led by cloud, cyber security, enterprise application services and IoT (internet of things) and digital engineering.

7) Client addition

TCS added 10 clients in the $100 million-plus bucket, and 19 clients in the $50 million-plus category, while there was addition of 40 clients in the $20 million-plus bracket and 52 clients in the $10 million-plus category.

8) Human resources

In Q4, TCS added 35,209 employees on a net basis, the highest net addition in a quarter. Employee headcount stood at 5,92,195 at the end of FY22, a net addition of 1,03,546 during the year, another all-time high.

“The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.6 percent of the workforce,” said the IT company.

IT services attrition (last 12 months) was at 17.4 percent.

9) Dividend

The company has announced a final dividend of Rs 22 per share. The said dividend will be paid on the fourth day from the conclusion of the 27th annual general meeting.

10) Research

As of March 2022, the company has applied for 6,583 patents, including 187 applied during the quarter, and has been granted 2,287 patents. For the full year, TCS filed for 704 patents and received a grant for 437 patents.

Moneycontrol News
first published: Apr 11, 2022 07:58 pm