TCS closes the year with broad-based growth

The company registered industry-leading margins and the highest ever order book.

TCS kickstarted the earnings season with a bang, posting highest ever order book TCV(total contract value) at $11.3 billion in Q4. For the financial year 2022, TCV stood at $34.6 billion.

India’s largest software services company logged the highest ever incremental revenue in a year of $3.533 billion with the revenue for the Financial year clocked at Rs 191,754 crore, 16.8% up from last year.

Likewise, the Q4 revenue was also up by 15.8% on YoY basis at Rs 50,591 crore. The operating margin for the IT major stood at 25.3% which is the best in class, while the net margins stood at 19.6%. The company reported a net profit of Rs 9926 crore, at a growth of 7.4% on a YoY basis.

For Q4, all verticals grew in the mid to high teens. Growth was led by Retail and CPG (22.1%), Manufacturing vertical (+19%) and Communications & Media (+18.7%). Technology & Services grew (+18%) and Life Sciences and Healthcare grew (+16.4%) while BFSI grew (+12.9%). BFSI( Banking and Financial Services) are the top contributors of revenue for the IT major.

Geographically, as all major markets grew, North America registered the largest growth of 17.5% followed by Europe and UK.

As IT services witnessed rising attrition, TCS was no exception with attrition continuing to climb, reaching 17.4%. However, incremental attrition has moderated. The second-largest market cap company in India has returned Rs 31,424 crore in cash to the shareholders through buybacks and dividends.

Amid weak market sentiment wherein the benchmark indices are trading in red, TCS’s results have been well received by the market participants. Among the Nifty50 stocks, TCS is one of the few stocks that is trading at a gain of 0.8% in today’s session. At, 11.20 am, the stocks of TCS are trading at Rs 3724.70 apiece.