India’s largest IT services company Tata Consultancy Services (TCS) on Monday reported a consolidated net profit of Rs 9,926 crore for the March 2022 quarter, a jump of 7.35 per cent on a year-on-year basis. Net profit stood at Rs 9,246 crore in the corresponding period of last fiscal. The company’s revenue grew 15.75 per cent to Rs 50,591 crore during January-March 2022, as against Rs 43,705 crore in the year-ago period.
Its total expenses also rose 18.74 per cent to Rs 37,963 crore, from 31,971 a year ago, according to a BSE filing. The company’s employee cost rose nearly 20 per cent to Rs 28,353 crore during the March 2022 quarter, from Rs 23,625 crore a year ago.
Tata Consultancy Services’ earnings per share rose to Rs 26.85 as compared to Rs 24.97 at the end of March 2021 quarter.
The company’s IT services attrition stood at 17.4 per cent as against 17.4 per cent during the financial year 2021-22. A total of 1,03,546 employees were added during the year and the total workforce is 5,92,195. TCS Chief said, “With highest net additions this year, consistently highest talent retention, benchmark talent development metrics, continued focus on health and wellbeing and multiple industry awards, we have positioned TCS as the #1 Employer Confirmed again.” Human Resource Officer Milind Lakkar said.
“In the Board meeting held today (Monday), the directors have recommended a final dividend of Rs 22 on each equity share of Re 1 of the company, which will be paid / remitted on the fourth day from the conclusion of the 27th Annual General Meeting. , subject to the approval of the company’s shareholders,” the statement said.
Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS said, “We are closing out FY12 on a strong note, with mid-teens growth and adding in the highest ever incremental revenue. Our customers’ growing involvement in the growth and transformation journey, and an all-time high order book provide a strong and sustainable foundation for further continued growth.”
In the December 2021 quarter, Tata Consultancy Services posted a consolidated net profit of Rs 9,769 crore, up 12 per cent from Rs 8,701 crore a year ago. Its revenue from operations grew 16 per cent to Rs 48,885 crore in the October-December 2021 quarter, as against Rs 42,015 crore in the year-ago period.
Analysts at ICICI Securities had said in a report that cross-currency headwinds could lead to revenue growth of 2.7 per cent QoQ in dollar terms; While in rupee terms, revenue is expected to grow by 3.1 per cent QoQ. He also expected TCS to post constant-currency revenue growth in the range of 3.0-3.5 per cent on a quarterly basis. It also expected the Tata group company to report profit after tax (PAT) of eight per cent on a year-on-year basis.
“Growth of Indian IT companies is expected to moderate in Q4FY22 as seen in Q4 quarters historically. Margins are expected to be impacted due to rising employee expenses. The demand environment remained strong due to continued deal momentum led by sectors such as BFSI, insurance, etc,” the report said.
Yes Securities had expected TCS to post 15.7 per cent year-on-year revenue growth, while the company’s PAT growth is likely to be 9.1 per cent year-on-year.
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