The country's largest software services firm Tata Consultancy Services on Monday opened the fourth-quarter earnings season with a stellar set of numbers, crossing the Rs 50,000 crore revenue mark for the first time and earning a net income of Rs 9,926 crore, registering a growth of 7.4 per cent year-on-year. The company said its revenue jumped 15.8 per cent to Rs 50,591 crore in the reporting quarter on an annualised basis.
Many analysts were expecting the Tata group flagship to report over Rs 10,000 crore of net income and revenue to cross the Rs 50,000 crore mark this quarter. 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.
TCS closed fiscal 2022 with a bang, crossing for the first time $25 billion annual revenue of Rs 1,91,754 crore, up 16.8 per cent, driven by the highest-ever incremental revenue of $3.533 billion and an all-time high order book. Its annual profit jumped 14.8 per cent to Rs 38,327 crore. On a sequential basis, the revenue grew 3.2 per cent in constant currency terms.
TCS also announced a final dividend of Rs 22 per equity share of the company.
According to the IT major, demand continued to be strong during the quarter as well as the full year with growth led by cloud, cyber security, IoT and digital engineering.
The company’s attrition rate rose further to 17.4% on a trailing 12-month basis as compared to 15.3% in the previous quarter. In terms of employee headcount, TCS witnessed a net addition of 35,209 employees, which is the highest ever in a quarter. This takes the total employee headcount to 592,195.
The company closed the quarter with the highest ever order book TCV (total contract value) of $11.3 billion in Q4 and $34.5 billion in FY22. Its operating margin stood at 25 per cent while net margin was at 19.6 per cent.
The company announced that its top vertical BFSI (banking, financial services & insurance) grew 14% sequentially, and it also won two mega deals in FY22.
N Ganapathy Subramaniam, Chief Operating Officer and Executive Director of TCS said, “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.”
With PTI inputs