BENGALURU: IT major Tata Consultancy Services (TCS) on Monday reported a 7.3% Y-o-Y increase in its consolidated net profit for the fourth quarter ending March 31, 2022, at Rs 9,926 crore. It reported a net profit of Rs 9,246 crore in the same quarter last year.
Analysts had predicted that the company’s net profit would be around Rs 10,000 crore. In terms of revenue, it beat street estimates by crossing over Rs 50,500 crore in the fourth quarter, a 15.7% increase compared to the same period in the last fiscal. Its revenue was Rs 43,705 crore in the year-ago period.
The company’s operating margin stood at 25.3% in FY22 and net margin at 19.6%. For FY2021-22, the largest software services provider added 10 clients in the $100 million-plus range, and its revenue stood at Rs 1,91,754 crore, an increase of 16.7% compared to the last fiscal year.
The IT major, which employs 5,92,195 people, has made a record hiring of over 1,03,546 employees in FY22, and it added 35,209 employees in the fourth quarter alone. It also plans to hire 40,000 people in this fiscal. However, its attrition continued to climb and stood at 17.4% in the fourth quarter. The company said attrition would stablise in the coming quarters.
Talking about geopolitical risks, Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS said that they do not have direct operations in any of the impacted countries (Russia, Ukraine). “We are staying vigilant about it. We do not have any first-level impact,” he said. The company is helping its customers whose operations are impacted due to geopolitical tensions.
TCS also signed the highest-ever order book of $11.3 billion in the fourth quarter. Its growth among markets was led by North America which grew 18.7%. The UK grew 13% and Continental Europe grew 10.1%. The company also announced a final dividend of Rs 22 per share. Shares of the company on Monday closed at Rs 3,696.40, up 0.26% from its previous close on the BSE.