TCS Q4 net profit zooms to Rs9,926 cr, revenue at Rs50,591 cr
12 Apr 2022
Tata Consultancy Services (TCS), India’s largest IT services company, on Monday reported a 7.3 per cent year-on-year (YoY) increase in consolidated net profit for fiscal fourth quarter ended 31 March 2022 at Rs 9,926 crore.
The company had posted a net profit of Rs9,246 crore in the corresponding quarter of the previous fiscal.
Total revenue for the quarter rose 16 per cent YoY to Rs50,591 crore from Rs43,706 crore in the year-ago quarter. At the operating level, EBITDA stood at Rs12,628 crore in Q4 FY22 against Rs12,237 crore in Q3 FY22. EBITDA margin stood at 24.96 per cent in Q4 FY22 ompared to 25.03 per cent in Q4 FY22.
Its annual profit jumped 14.8 per cent to Rs38,327 crore. On a sequential basis, the revenue grew 3.2 per cent in constant currency terms.
TCS closed fiscal 2022 with annual revenue of Rs1,91,754 crore (more than $25 billion) for the first time - a growth of 16.8 per cent, driven by the highest-ever incremental revenue of $3.533 billion and an all-time high order book.
"All verticals grew in the mid to high teens. Growth was led by retail and CPG (up 22.1 percent), manufacturing vertical (up 19 per cent) and communications & media (up 18.7 per cent). Technology and services grew (18 per cent) and life sciences and healthcare grew (16.4 per cent) while BFSI grew (12.9 per cent)," the company said.
North America revenue grew 18.7 per cent, followed the UK (up 13 per cent) and Continental Europe (up 10.1 per cent). Among emerging markets, Latin America revenue grew (20.6 per cent), the Middle East & Africa (7.3 per cent), India (up 7 per cent), and the Asia Pacific (5.5 per cent).
"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," Rajesh Gopinathan, chief executive officer and managing director, said.
The Mumbai-based company announced a final dividend of Rs22 per equity share of Re1 each, which shall be paid/dispatched on the fourth day from the conclusion of the 27th annual general meeting, subject to the approval of the shareholders of the company.
“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," N Ganapathy Subramaniam, chief operating officer and executive director, said.
As of 31 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 was granted 437.
"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," Samir Seksaria, chief financial officer, said.
In Q4, TCS added 35,209 employees on a net basis, the highest ever net addition in a quarter. Total employee headcount stood at 592,195, a net addition of 103,546 during the year, another all-time high. The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.6 per cent of the workforce.