TCS net profit jumps 7.4 pc to Rs 9,926 cr in Q4; quarterly revenue crosses Rs 50,000-cr mark

Mumbai: 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 recording 7.4 per cent year-on-year growth in net profit to Rs 9,926 crore.

This quarterly earning helped the city-based software major -- which employs over 5,92,000 professionals deployed in 46 countries -- to cross the USD 25 billion annual revenue mark for the first time, clipping at 16.8 per cent to USD 25.7 billion or Rs 1,91,754 crore, the company said in a press briefing this evening.

Full-year net income grew 14.8 per cent to Rs 38,327 crore.

Rajesh Gopinathan, the chief executive and managing director, told reporters that the quarter witnessed the higher-ever incremental revenue addition of USD 3.533 billion and an all-time high order book of USD 11.3 billion, which for the full year stood at USD 34.6 billion.

The total income rose 15.8 per cent to Rs 50,591 crore in the quarter, Gopinathan said, adding they could maintain an industry-leading operating margin of 25.3 per cent, which is down 180 bps from the year-ago quarter, while the net margin stood at a healthy 19.6 per cent.

We have closed 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 us with a strong and sustainable foundation for continued growth ahead, Gopinathan added.

He attributed the "robust broad-based growth and industry-leading margins” to their continued investments in building newer capabilities.

The company added 10 clients in the USD 100 million-plus bucket, 19 in the USD 50 million-plus range, 40 in the USD 20 million and 52 in the USD 10 million-plus bucket, he said.

TCS, the single largest employer in the private sector, added 1,03,546 employees on a net basis during the year, taking the overall headcount to 5,92,195, who hail from as many as 153 nationalities and 35.6 per cent of them women. They are deployed in 46 countries.

Of the net addition of 1,03,546, as many as 35,209 were hired in the reporting quarter, which is also the highest ever, the company said. However, despite such massive employee addition, the company faced a very high 17.4 per cent attrition.

The company has a free cash flow of Rs 39,181 crore, which is 111.3 per cent of net income and returned Rs 31,424 crore of cash to shareholders through buybacks and dividends.

Gopinathan also announced a final dividend of 22 per share.

Samir Seksaria, the chief financial officer, said TCS has managed the headwinds well and delivered 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.

Seksaria said all verticals grew in the mid to high teens during the quarter. Growth was led by retail and CPG (22.1 per cent), manufacturing (19 per cent) and communications & media (18.7 per cent), technology & services (18 per cent) and life sciences and healthcare grew over 16.4 per cent, while BFSI grew at a slower pace of 12.9 per cent.

The record growth was led by North America, which grew over 18.7 per cent, England 13 per cent, Continental Europe (10.1 per cent), Latin America (20.6 per cent), the Middle East & Africa (7.3 per cent), India (7 per cent), and Asia Pacific (5.5 per cent).