TCS Q4 Results Highlights | IT major Tata Consultancy Services (TCS) declared its results for the fourth quarter of financial year 2021-22 today. The company struck a new milestone, with the revenue crossing Rs 50,000 crore for the first time, and profit came close to the Rs 10,000 crore-mark.
The firm has reported a consolidated net profit of Rs 9,926 crore for the quarter ended March 2022, registering a 7 percent on-year growth.
The consolidated revenue for TCS during the January - March period stood at Rs 50,591 crore, up 16 percent from the year-ago quarter, aided by all-round growth across business verticals, stable deal wins and an increase in transformation spends by corporates.
The company had reported a profit of Rs 9,246 crore and revenue of Rs 43,705 crore in the corresponding period of previous financial year. Consolidated profit for the preceding quarter of the current financial year (October-December 2021) stood at Rs 9,769 crore on revenue of Rs 48,885 crore.
TCS' growth in Q4FY22 was expected to be broad-based across verticals as it continues to witness strong demand across technology segments aided by strong client requirements for cloud and digital transformation, data analytics, artificial intelligence, Internet of Things (IOT), 5G rollouts and cyber security.
According to 28 analysts polled by Bloomberg, TCS was estimated to post a revenue of Rs 50,355 crore while net profit is expected to come in at Rs 10,055 crore. Analysts predicted a broadly stable margin with attrition almost peaking out. Management commentary on the outlook on the growth environment was stated to be a key thing to watch out for.
Kotak Institutional Equities pegged growth in dollar revenues at 11 percent on year to $6,649 million while constant currency revenues were expected to grow 12.9 percent on year and 2.4 percent on a sequential basis.
It expected the company to report revenues of Rs 50,067 crore for the quarter at an annualised growth rate of 14.6 percent and a sequential rate of 2.4 percent.
Motilal Oswal Financial Services expected the company to report 12.3 percent growth on year in dollar revenues to $6,726 million while revenue in rupee terms is expected to grow 15.7 percent on year to Rs 50,600 crore, a sequential rate of 3.5 percent.
According to Nomura, rupee revenues were likely to increase by 14.1 percent on year to Rs 49,860 crore, an increase of 2 percent on quarter. Experts had expected deal wins in Q4FY22 to remain stable as compared to Q3FY22.
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TCS Q4 Results LIVE Updates |
"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, " said CEO Rajesh Gopinatahan.
TCS Q4 Results LIVE Updates |
TCS has recommended a final dividend of ~Rs 22 per equity share of Re l each. The proposed final dividend shall be paid on the fourth day from the conclusion of the 27th Annual General Meeting, subject to approval of the shareholders of the company.
TCS Q4 Results LIVE Updates | "
As on March 31, 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 was granted 437," TCS said.
TCS Q4 Results LIVE Updates |
TCS noted that it has been selected by the Indian Ministry of External Affairs for the second phase of the Passport Seva Program, the country’s largest mission-critical e-governance program till date, following TCS’ successful implementation of the first phase when it digitized all the processes.
TCS Q4 Results LIVE Updates |
Listing the recognitions it earned during the fiscal, TSC said it "ranked #1 in customer satisfaction across Europe, for the ninth consecutive year, in the largest independent survey of 1,800 CxOs from top IT spending organizations in Europe by Whitelane Research. TCS was ranked #1 in UK, France, Netherlands, BeLux, Switzerland, Sweden, Norway and Finland."
TCS Q4 Results LIVE Updates | At 18.7%, North American market recorded maximum expansion
"Growth among markets was led by North America which grew (+18.7%). UK grew (+13%), Continental Europe grew (+10.1%). Among emerging markets, Latin America grew (+20.6%), Middle East & Africa grew (+7.3%), India grew (7%), and Asia Pacific grew (+5.5%)," TCS said.
TCS Q4 Results LIVE Updates |
According to TCS, all verticals grew in the mid to high teens. "Growth was led by Retail and CPG (22.1%), Manufacturing vertical (+19%) and Communications & Media (+18.7%). Technology & Services grew (+18%) and Life Sciences and Healthcare grew (+16.4%) while BFSI grew (+12.9%)," the company said in a press release.
TCS Q4 Results LIVE Updates |
"'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,"Milind Lakkad, Chief HR Officer, said
TCS Q4 Results LIVE Updates |
“While continuing to make all the investments needed to support our growth aspirations, we managed the headwinds this year to deliver an industry-leading operating margin yet again. The successful completion of our fourth buyback in five years is another milestone in our shareholder-friendly approach to capital allocation," saidSamir Seksaria, TCS' Chief Financial Officer.
TCS Q4 Results LIVE Updates |
“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," saidN Ganapathy Subramaniam, Chief Operating Officer and Executive Director.
TCS Q4 Results LIVE Updates |
“We are closing FY 22 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," said Rajesh Gopinathan, TCS' Chief Executive Officer and Managing Director.
TCS Q4 Results LIVE Updates |
Consolidated revenues for FY22 stood at Rs 1,91,754 crore, a 17 percent rise from the revenues of Rs 164,177 crore reported for FY21.
TCS Q4 Results LIVE Updates | TCS' FY22 profit comes in at Rs 38,327 crore, up 18% YoY
For the full year period (April-March2022), the consolidated profit was recorded at Rs 38,327 crore, which is a growth of 18 percent from a profit of Rs 32,430 crore reported for FY21.
TCS Q4 Results LIVE Updates | TCS says it made record 1.03 lakh hirings in FY22
TCS made a record hiring by adding1,03,546 people for the year ending March 2022, up from over 40,000 people it hired in FY21. The companyon-boarded close to 78,000 freshers in FY22, up from 40,000 it had in the last year. However, attrition continues to be a concern for the firm.The company’s attrition increased to 17.4 percent in the quarter, from 8.6 percent in the beginning of the year and 11.9 percent in the December 2021 quarter.
TCS Q4 Results LIVE Updates | Revenue comes in at Rs 50,591 crore
The revenue for the fourth quarter has come in at Rs 50,591 crore, which is 15.8 percent higher as compared to the corresponding quarter in the last fiscal, TCS reported.
TCS Q4 Results LIVE Updates | TCS reports Q4 profit at Rs 9,926 crore.
The fourth quarter profit for IT major TCS has come in at Rs 9,926 crore, which is close to the Rs 10,000-mark as estimated by experts. The numbers mark a seven percent surge as compared to the year-ago period.
TCS Q4 Results LIVE Updates |
Analysts forecast that EBIT margin is likely to come under pressure due to supply-side headwinds. According to analysts, TCS is likely to see a 20 bps quarter-on-quarter decline in EBIT margin to 24.8 percent due to continued rising employee costs amid high attrition.
TCS Q4 Results LIVE Updates |
What will investors look out for? Analysts expect investors will focus on the demand outlook for FY23, the impact of high inflation and supply chain issues globally on tech spending, update on pricing given high inflation faced by clients, the presence of large and mega deals in the pipeline, supply-side issues, hiring trends, wage hikes and its impact on margins ahead, and implications of change in organisational structure.
TCS Q4 Results LIVE Updates |
Global brokerage firm Nomura estimates 11 percent on year growth in dollar revenues to $ 6,648 million while in constant currency terms revenue is expected to register sequential growth of 2.5 percent.
According to Nomura, rupee revenues are likely to increase by 14.1 percent on year to Rs 49,860 crore, an increase of 2 percent on quarter.
TCS Q4 Results LIVE Updates |
Analysts say TCS has rolled out a new organisational structure with an intention to scale business and drive sharper customer focus. Roles of top leadership could change. Assessment of impact on business, if any, will be an area of focus, they add.
TCS Q4 Results LIVE Updates |
According to 28 analysts polled by Bloomberg, TCS is expected to post revenue of Rs 50,355 crore while net profit will be at Rs 10,055 crore.Analysts expect a broadly stable margin with attrition almost peaking out. Management commentary on the outlook on the growth environment would be a key thing to watch out for.
TCS Q4 Results LIVE Updates |
Consolidated profit after tax for TCS may jump 8 percent on year to Rs 10,000 crore in the quarter ended March while consolidated revenues are expected to grow 15.5 percent on year to Rs 50,500 crore, said experts tracking the company.
TCS Q4 Results LIVE |
Tata Consultancy Servicesis all set to announce its March quarter results today. The IT major is eying a new milestone for the fourth quarter with revenue likely to cross Rs 50,000 crore for the first timeand the profitmay hit Rs 10,000 crore.
