TCS Q4FY22 Results: Profit rises 1.60% QoQ to Rs 9,926 crore; recommends dividend of Rs 22/share

Tata Consultancy Services (TCS) on Monday reported a 1.60 per cent quarter-on-quarter (QoQ) rise in the consolidated profit at Rs 9,926 crore for the quarter ended March 31, 2022. It had posted a profit of Rs 9,769 crore in the corresponding quarter of the previous quarter ended December 2021.

India's largest software services company's consolidated revenue from operations grew 3.5% QoQ to Rs 50,591 crore as against Rs 48885 crore posted in the previous quarter. Its EBIT grew by 3.2% QoQ to Rs 12,628 crore as against Rs 12,237 crore posted in the previous December quarter. Its margin stood at 25 in Q4FY22.

In dollar terms, the company's revenue grew by 2.6% QoQ to $669.6 crore as against $652.4 crore posted in December 2021 quarter.

The software services company has recorded its highest-ever incremental deal wins during a three-month period. The company recorded its highest-ever order book TCV (total contract value) of $11.3 billion in Q4FY22 and the full-year order book stood at $34.6 billion.

Rajesh Gopinathan, Chief Executive Officer and Managing Director said, "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."

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director said, "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. Our continued investments in building newer capabilities, our passion for innovation, our contextual knowledge and most importantly, our self-belief have been key to this, and these position us very well for continued success ahead."

Besides, the Board of Directors of the company has recommended a Final Dividend of Rs 22 per equity share of Rs 1 each of the company, 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.

In terms of research and innovation, the company said that as of March 31, 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.

In terms of human resources, the company said, in Q4FY22, TCS added 35,209 employees on a net basis, the highest ever net addition in a quarter. 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% of the workforce.

TCS' focus on organic talent development continues to produce best in class outcomes. In Q4, TCSers logged 22 million learning hours. For the full year, the company's investments in learning and development resulted in the workforce acquiring 3.5 million digital competencies. The number of Contextual Masters crossed 50,000 – another key milestone in the journey to scale growth and transformation capabilities within the organization.

The company's philosophy of investing in people, and its progressive workplace policies have resulted in industry-leading retention in an environment of increased churn. IT services attrition continued to climb, reaching 17.4%. However, incremental attrition has moderated.