New Delhi: India’s largest IT services company, Tata Consultancy Services (TCS), on Monday reported consolidated net profit of Rs 9,926 crore for the quarter ended 31 March, 2022 (Q4FY22), up 7 per cent from Rs 9,246 crore a year-ago period, according to the PTI.
For the first time, the IT major’s revenue from operations rose 16 per cent to Rs 50,591 crore in the fourth quarter. It was Rs 43,705 crore in the same period last year.
A Bloomberg consensus estimate has pegged TCS revenues at Rs 50,249 crore and a net profit of Rs10,077 crore for the March quarter.
The board of TCS has also recommended a final dividend of Rs 22 per equity share.
“We are closing FY22 on a strong note, with mid-teen growth and adding the maximum incremental revenue ever. 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," said TCS MD and CEO Rajesh Gopinathan, according to news report.
The company has witnessed its highest-ever order book TCV (total contract value) at $11.3 billion in Q4 and $34.6 billion in FY22.
On Monday, TCS shares closed 0.36 per cent higher at Rs 3,699 apiece on NSE.
So far in 2022, the stock is down about 3 per cent as compared to a near 10 per cent drop in the Nifty IT index.
According to 28 analysts polled by Bloomberg, TCS is expected to post revenue of Rs 50,355 crore while net profit will be at Rs 10,055 crore. Analysts expect a broadly stable margin with attrition almost peaking out. Management commentary on the outlook on the growth environment would be a key thing to watch out for.
Analysts say TCS has rolled out a new organisational structure with an intention to scale business and drive sharper customer focus. Roles of top leadership could change. Assessment of impact on business, if any, will be an area of focus, they add.