TCS Q4 results: Net profit rises 15% to ₹9,246 cr; revenue at ₹43,705 cr
The company said that the board recommended a final dividend of ₹15 per equity share
PremiumIT services company Tata Consultancy Services (TCS) kickstarted the earnings season on Monday by reporting a 14.9% rise in net profit at ₹9,246 crore for the quarter ended March, 2021 as compared to ₹8,049 crore in the same quarter last year. The company's revenue grew 9.4% to ₹43,705 crore from ₹39,946 crore in the corresponding period last fiscal, it added. The company's constant currency growth came at 4.2% quarter-on-quarter (QoQ) and 5.9% YoY.
The operating margin in the fourth quarter (Q4) was reported at 26.8%, 0.2% expansion QoQ and 1.7% YoY. The company said that the board have recommended a Final Dividend of ₹15 per equity share. The company said its net addition is at 19,388 employees, highest ever in a quarter.
For the quarter ending December 2020, TCS' net profit came at ₹8,701 crore while the revenue stood at ₹42,015 crore.
TCS' revenue from its largest vertical i.e., Banking, Financial Services and Insurance (BFSI) came at ₹17,559 crore, up 15% against ₹15,207 crore year-on-year (YoY). Its Q4 Order Book stands at $9.2 billion; highest ever TCV in a quarter.
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “Our investments over the last decade in building newer capabilities, and in research and innovation, position us well for the multi-year technology services opportunity ahead. While we continue to dominate in our traditional areas of strength, we are making good progress in gaining share in the growth and transformation opportunity. Our focus going into FY 22 will be to engage with clients in their growth agenda, propelled by innovation and leverage of collective knowledge."
V Ramakrishnan, Chief Financial Officer, said: “Our Q4 margins are a validation of our strong belief that it is possible to win mega-deals, post industry-leading growth, continue to invest in our people and in newer capabilities, and still deliver industry-leading profitability. All the investments that we have been making over the years position us strongly to expand our footprint in the large growth and transformation opportunity."
The company on a separate exchange filing announced that it has appointed Samir Seksaria as Chief Financial Officer, effective May 1, 2021 to take over from Mr. Ramakrishnan V., who would be retiring from the services of the company effective April 30, 2021.
On Monday, the shares of the IT company closed 2.43% lower at ₹3,241.45 per share on the BSE.
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