TCS Q4 profit misses estimates at ₹9,926 cr, declares dividend | Mint
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Business News/ Companies / Company Results/  TCS Q4 profit misses estimates at 9,926 cr, declares dividend
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TCS Q4 profit misses estimates at ₹9,926 cr, declares dividend

TCS Q4 results: The IT giant's revenue from operations rose 16% to ₹50,591 crore in the fourth quarter
  • The company has witnessed its highest-ever order book TCV (total contract value) at $11.3 billion in Q4 and $34.6 billion in FY22.
  • On Monday, TCS shares closed 0.36% higher at ₹3,699 apiece on NSE. So far in 2022, the stock is down about 3% as compared to a near 10% drop in the Nifty IT index. (Bloomberg)Premium
    On Monday, TCS shares closed 0.36% higher at 3,699 apiece on NSE. So far in 2022, the stock is down about 3% as compared to a near 10% drop in the Nifty IT index. (Bloomberg)

    Tata Consultancy Services (TCS), India's largest IT services company, on Monday posted consolidated net profit of 9,926 crore for the quarter ending 31 March, 2022 (Q4FY22), up 7% from 9,246 crore a year ago.

    TCS revenue from operations rose 16% to 50,591 crore in the fourth quarter. It was 43,705 crore in the same period last year.

    A Bloomberg consensus estimate has pegged TCS revenues at 50,249 crore and a net profit of 10,077 crore for the March quarter.

    On Monday, TCS shares closed 0.36% higher at 3,699 apiece on NSE. So far in 2022, the stock is down about 3% as compared to a near 10% drop in the Nifty IT index.

    In constant currency terms, the revenue for the March quarter has grown by 14%. In dollar terms, the company's revenue came in at $6,696 million, showing a growth of 12% year-on-year.

    Further, TCS Board has recommended a final dividend of 22 per equity share.

    “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," said TCS MD and CEO Rajesh Gopinathan.

    The company has witnessed its highest-ever order book TCV (total contract value) at $11.3 billion in Q4 and $34.6 billion in FY22.

    TCS and rivals Infosys, Wipro and HCL Technologies have been winning more large contracts from businesses that are investing in services ranging from cloud computing, digital payment infrastructure, crypto platforms to cyber-security.

    TCS, the second most valuable company in the country, has reported a flat operating margins at 25% when compared with the previous December quarter, while net Margin stood at 19.6%.

    TCS added highest ever employees in a quarter during the January-March period, with net additions of 35,209 employees, taking the total employee headcount at 592,195.

    The company's attrition rate rose further to 17.4% (voluntary TTM) on a trailing 12 month basis as compared to 15.3% in the previous quarter.

    The workforce continues to be very diverse, comprising of 153 nationalities and women making up 35.6% of the workforce

    The IT major 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 and digital engineering.

    “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," TCS chief operating officer and executive director N Ganapathy Subramaniam.

    TCS said all verticals grew in the mid-to-high teens, with growth led by retail and CPG (22.1%), manufacturing vertical (+19%) and communications & media (+18.7%). technology and services (+18%) and life sciences and healthcare (+16.4%), while BFSI grew 12.9%.

    Anaylst note

    "TCS continues to build on strong momentum and is using its large size to win mega deals of more than $1 billion. The margins are slightly below expectations and a key reason could be a high attrition rate of 17.4%. We expect the attrition rate to stay elevated over the next year as the demand for software engineers is very robust," said Abhay Agarwal, Founder, and Fund Manager, Piper Serica, SEBI Registered Portfolio Management Service Provider.

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    Published: 11 Apr 2022, 05:41 PM IST
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