TCS Q4FY22 Results Update

On 11th April 2022 India’s one of the leading IT company, Tata Consultancy Services announced its quarterly results for the last quarter of FY2022.

TCS Q4 Results for FY 22 Declared

Key Highlights:

Q4FY22 Performance updates:

Revenue:

- The INR revenue grew by 15.8% YoY to Rs.5,05,910 Million

-The USD revenue grew by 11.8% YoY to $ 6696 Million

-The constant currency revenue is up by 14.3% YoY.

- Besides, the company's consolidated revenue during the period under review declined to Rs.164,177 crore from Rs.191,754 crore.

- Revenue from operations up by 15.7% YoY to Rs.50591 Crore from Rs.43705 Crore in Q4FY21.

Profit: 

- The Operating Margin is at 25%

- Net Margin at 19.6%

- Cash flow from operations at 11.3% of the net profit.

- PAT up by 7.2% YoY to Rs.9959 crore compared to Q4FY21.

- Total income up by 15.5% YoY to Rs.51572 Crore from Rs.44636 in Q4FY22.

Employee count:

- In the quarter, 35,209 associated were appointed, closing headcount was 592195.

- LTM attrition is at 17.4% in IT services.
 

FY22 Annual Financial Performance:

Revenue: 

- The INR Revenue has seen a growth of 16.8% YoY to Rs.1.92 trillion

- The USD Revenue saw a growth of 15.9% YoY to $ 25,707 Million

- The constant currency has seen revenue growth of 15.4%

Profit:

- The Operating Income for FY22 is Rs.484,530 Million, Operating Margin of 25.3% 

- Net Income at ₹ 383,270 Million, $ 5,139 Million, Net Margin of 20.0% 

- Free Cash Flow at ₹ 391,810 Mn, 3.2% up

Employee count:

- 103546 employees were appointed for the year.

- The closing headcount is 592195

Geographical market growth:

- For Q4FY22, the geographical presence in the North American market grew to 51.6% from 48.6% in Q4FY21. On a YoY basis, the geographical presence increased to 50.5% in FY22 from 49.7% in FY21. The constant currency growth for Q4FY22 is 18.7% and for FY22 is 17.5% YoY.

- For Q4FY22, the geographical presence in the Latin American market grew to 1.7% from 1.6% in Q4FY21. On a YoY basis, the geographical presence increased to 1.7% in FY22 from 1.6% in FY21. The constant currency growth for Q4FY22 is 20.6% and for FY22 is 18.2%YoY.

- In Q4FY22, the presence in the UK market dropped to 15.6% from 16% in Q4FY21. On a YoY basis, the geographical presence increased to 15.9% in FY22 from 15.6% in FY21. The constant currency growth for Q4FY22 is 13% and for FY22 is 14.3%YoY.

- In Q4FY22, the Continental Europe market presence of TCS dropped to 15.5% from 16.8% in Q4FY21. On a YoY basis, the geographical presence decreased to 16% in FY22 from 16.3% in FY21. The constant currency growth for Q4FY22 is 10.1% and for FY22 is 15.1%YoY.

- In Q4FY22, the geographical presence in the Asia Pacific market decreased to 8.5% from 9.4% in Q4FY21. On a YoY basis, the geographical presence decreased to 8.8% in FY22 from 9.6% in FY21. The constant currency growth for Q4FY22 is 5.5% and for FY22 is 6.7%YoY.

- In Q4FY22, the geographical presence in the Indian market decreased to 5.1% from 5.6% in Q4FY21. On a YoY basis, the geographical presence remained stable at 5.1% for FY22 and FY21. The constant currency growth for Q4FY22 is 7% and for FY22 is 16%YoY.

- In Q4FY22, the geographical presence in the Middle-East and Africa market remained stable at 2% for Q4FY22 and Q4FY21. On a YoY basis, the geographical presence decreased to 2% in FY22 from 2.1% in FY21. The constant currency growth for Q4FY22 is 7.3% and for FY22 is 12.9%YoY.

Growth in Services:

- Key Growth & Transformation themes that saw increased traction include – Cloud Migration and Modernization, Connected Plants, Customer Experience Management, Cyber risk management, and NextGen Enterprise Transformation.

- The demand environment continued to be strong across all markets, industries, and services.

- The multi-year technology cycle fueled by cloud adoption continued apace. Key offerings which led to growth are application modernization leveraging cloud-native application development, data platform modernization, and migration services.

- The outlook remains strong with the highest ever pipeline. TCS is well-poised to capitalize on the demand fueled by its clients prioritizing digital transformation for growth.

- TCS won the Frost and Sullivan Asia-Pacific Integrated Operations Services Technology Innovation Leadership Award 2021.

Partnerships:

- Sun Life Financial, a leading international financial service has partnered with TCS on a digital transformation journey to implement a modern, cloud-based content management platform.

- TCS partnered with Payments Canada, the country’s largest payment organization, to transform its payment system operations and help implement the Real-Time Rail (RTR).

- TCS was selected by NXP Semiconductors Netherlands B.V., a global semiconductor company, to modernize its ERP landscape. 

- TCS is Selected by the Ministry of External Affairs, Government of India, for the second phase of the Passport Seva Program, the country’s largest mission-critical e-governance program to date.

- TCS has been proactively engaged with HARTMANN on a future product line to add to and expand its wound management product portfolio. 

- TCS also partnered with a US-based Pharma company, a Swedish Retail Company, and a US-based leading wholesale distributor to provide various services.

TCS also announced a final dividend of Rs.22 per equity share of rupee 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.

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

On Monday, the company's scrip on BSE closed 0.26 percent lower at Rs.3,696.40 per share.