TCS reports 15% rise in Q4 net at Rs 9,246 cr; declares dividend of Rs 15

Topics TCS | Q4 Results | IT sector

(Photo: Bloomberg)
India's largest software exporter Tata Consultancy Services (TCS) on Monday reported 15% increased in its consolidated net profit at Rs 9,246 crore for the fourth quarter ending March 31, 2021. It was Rs 8,049 crore in the year-ago period. 

Consolidated revenue from operations rose 9.4% to Rs 43,705 crore as against Rs 39,946 crore a year ago. 

Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS said: “Our investments over the last decade in building newer capabilities, and in research and innovation, position us well for the multi-year technology services opportunity ahead. While we continue to dominate in our traditional areas of strength, we are making good progress in gaining share in the growth and transformation opportunity. Our focus going into FY22 will be to engage with clients in their growth agenda, propelled by innovation and leverage of collective knowledge.”

In Q4FY21, TCS added 19,388 employees to its payrolls on a net basis, its highest ever net addition in a quarter. The total headcount stood at 488,649, a net addition of 40,185 during the year. "The workforce continues to be young and very diverse, comprising 154 nationalities and with women making up 36.5% of the workforce," said the IT major which recently announced pay hikes for its employees despite coronavirus pandemic continuing to be prevalent. 

The net profit for the fiscal ended March 2021 was up at Rs 33,388 crore (excluding legal claim provisions), from Rs 32,340 crore in the previous financial year.

Its net profit on a reported basis stood at Rs 32,430 crore for FY21.

TCS had provided Rs 1,218 crore (USD 165 million) towards a legal case (relating to Epic Systems Corporation) in its consolidated statement of profit and loss for the year ended March 31, 2021.

The revenue was higher by 4.6 per cent to Rs 1,64,177 crore in FY21 from Rs 1,56,949 crore in the preceding financial year, the filing said.

The Board of Directors has proposed a final dividend of Rs 15 per equity share.

V Ramakrishnan, Chief Financial Officer at TCS, said the company's performance in the fourth quarter "caps three-quarters of consistently robust performance in a pandemic year, and gives us a strong exit from FY21".

"Our Q4 margins are a validation of our strong belief that it is possible to win mega-deals, post industry-leading growth, continue to invest in our people and in newer capabilities, and still deliver industry-leading profitability," he added.
Ramakrishnan further said that all the investments made by the company over the years have positioned it strongly to expand its footprint in the large growth and transformation opportunity.

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, TCS said: “I am pleased to note that in FY 21, leading organizations partnered with TCS in their growth and transformation journeys. Many of them benefited from our refreshingly different consultative approach to shaping, contracting, executing, and measuring the success of transformation programs, always holding ourselves accountable for the results.

“With the second wave of the pandemic upon us, our top priority is once again to secure the health and personal wellbeing of our workforce across the world. We are looking at ways to expedite vaccinations for eligible TCSers wherever local regulations allow it, and in the meantime, urge everyone to stay safe, step out only if necessary, wear masks and practice physical distancing,” said Milind Lakkad, Chief HR Officer at TCS in a statement.

The fourth-quarter order book at $9.2 billion is the highest-ever TCV (total contract value) in a quarter. The FY21 order book was at $31.6 billion, up 17.1 per cent year-on-year, the filing said.

TCS announced its results after market hours. Its scrip closed at Rs 3,241.45 apiece, down 2.43 per cent from its previous close on the BSE.

Its rivals Infosys and Wipro will announce their March quarter and FY21 numbers on April 14 and April 15, respectively.

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