TCS net profit rises 14.9% to Rs 9,246 crore in Q4

In Q4, TCS added 19,388 employees, which it said was its highest ever in a quarter.
Tata Consultancy Services
Tata Consultancy Services
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Tata Consultancy Services reported a net profit of Rs 9,246 crore, up 14.9% for the January-March quarter. This is against a net profit of Rs 8,049 crore in the year-ago period. Its revenue for the quarter was up 9.4% compared to the same period last year. TCS also saw its highest ever deal wins in a quarter with its total contract value coming in at $9.2 billion. 

For the full year, its revenue was up 4.6% at Rs 1,64,177 crore with a net profit of Rs 33,388 crore (excluding legal claim provisions), from Rs 32,340 crore in the previous financial year.. Its order book for FY21 grew 17.1% year-on-year to $31.6 bn. It has proposed a final dividend of Rs 15 per share. 

TCS provided Rs 1,218 crore towards a legal case pertaining to Epic Systems Corporation in its statement of profit and loss for the year ended March 31, 2021.

Chief Financial Officer V Ramakrishnan 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.”

During the quarter, TCS added 19,388 employees, which it said was its highest ever in a quarter. For the year, its net addition was 40,185 employees, and a total headcount of 4,88,649. Attrition stood at 7.2%, which it said was an all-time low. Women make up 36.5% of the workforce. For people it hired from campuses, Chief HR Officer Milind Lakkad said that the company offered numbers similar to last year.  

“Employees logged 43 million learning hours in FY 2021, resulting in over 379,000 employees getting trained on multiple new technologies, and over 457,000 trained on Agile methods,” TCS said in a statement. 

Lakkad said the company is looking at ways to expedite vaccinations for eligible employees wherever local regulations allow it. 

In terms of business segments, TCS said all showed sequential growth but some continued to lag year-on-year. 

BFSI grew at 7% sequentially and 13.3% for the year), retail and consumer packaged goods grew sequentially at 4% but declined for the year at -0.9%. Life sciences and healthcare saw good growth with 3.8% quarter-on-quarter and 19.3% for the year, manufacturing grew +3.9% sequentially and 1.3% YoY), technology & services saw 2.8% growth QoQ, and 3.9% YoY.

Communications & media also saw a yearly decline at -4%, and grew 1.8% sequentially. 

“On a full year basis, Life Sciences and Healthcare (+17.1%), BFSI (+2.4%) and Technology & Services (+0.2%) showed growth while the rest continue to be below prior year levels,” TCS said in a statement. 

Its growth was led by the Continental Europe, North America and UK markets. On a full year basis, with the exception of Continental Europe which grew +5.5%, all other markets continue to be in negative territory compared to the prior year, it said. 

CEO and MD Rajesh Gopinathan said: “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.

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