Thought leadership: Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS on their exceptional performance

Tata Consultancy Services (TCS), announced its Q4 results and full-year results yesterday. The company recorded its highest-ever order book TCV: $11.3 billion and the highest ever incremental revenue in a year at $3.533 billion. Its Q4 revenue stood at $6.696 billion.

In the press conference after the Q4 announcements, Gopinathan discussed the following points:

• They have witnessed steady growth in key geographical areas with North America leading. In terms of verticals, in this quarter BSFI is leading at $2.14 billion, Retail and CPG which was affected during the pandemic also saw accelerated growth and delivered the best ever returns of $1.03 billion and manufacturing, another affected area rebounded with a return of $0.67Bn.

• Even when the attrition rate is a bit high, they are expecting it to flatten soon and are planning to onboard new freshers this year.

• In terms of innovation, they are robust and have applied for 6583 patents out of which 2287 have already been granted.

• Gopinathan stated that Q4 has been a very encouraging quarter in terms of all the parameters of the business. The biggest positive of the quarter was the total volume of deals signed.

• The total TCV signed was the highest ever at about $9.5Bn. This is because the demand side is really strong and expects positive momentum in the upcoming year. He mentioned that the pandemic has led businesses to prioritize spending on tech. Companies have been betting on tech as it has been a credible solution to mitigate operational hurdles.

• When asked about the geopolitical pressure and the inflationary environment and its impact on the IT sector, Gopinathan responded by saying inflation is not a demand collapsing agent of this industry and the war is not causing any direct impact on its operations. Overall, TCS is ready to work on achieving new milestones in this fiscal year too.