Tata Consultancy Services (TCS) reported that fourth quarter net profit grew 7.4% year-on-year to Rs 9,926 crore, led by outperformance across geographies.
Revenue grew 15.8% to ₹50,591 crore for the quarter ended March 31. At constant currency, the increase was 14.3%. Operating margin at 25% was down 189 basis points compared to the year-ago period.
For the full year ended March 31, the company reported a growth of 14.8% in net profit to Rs 38,327 crore. Revenue grew 16.8% to ₹1,91,754 crore. Constant currency growth was 15.4%.
Rajesh Gopinathan, CEO and MD, said, “We are closing FY22 on a strong note with mid-teens growth and adding to the maximum incremental revenue ever.” “Overall it is a very strong year (FY22). We are happy with the way we rebounded. Our investment in services is paying off.
“Our customers’ growing involvement in the growth and transformation journey, and an all-time high order book provide a strong and sustainable foundation for continued growth,” he said.
N. Ganapathi Subramaniam, COO & ED said, “It is extremely satisfying to close out the year with strong, broad-based growth, industry-leading margins and highest ever order book.”
He added, “During the year, we launched a technologically challenging, industry-first transformational program and brought to bear the capabilities of TCS and the full power of our collaborative ecosystem to successfully deliver market-changing results. “
Our constant investment in building new capabilities, our passion for innovation, our contextual knowledge and most importantly our self-confidence have been key to this, and this bodes well for our continued success going forward. position,” he said.
“While continuing to make all the investments required to support our growth aspirations, we managed headwinds to deliver an industry-leading operating margin this year,” said Sameer Sexaria, CFO.
“The successful completion of our fourth buyback in five years is another milestone in our shareholder-friendly approach to capital allocation,” he added. The company said it achieved the highest ever order book of $11.3 billion during the fourth quarter and the total order book stood at $34.6 billion in FY22.
All of the company’s verticals grew in the high teens during the quarter and mid-year, with growth led by retail and CPG. Growth among markets was led by North America, followed by the UK and Continental Europe. Demand remained strong during the quarter as well as throughout the year across markets, industries and services, with growth led by cloud, cyber security, enterprise application services and IoT and digital engineering, the company said.
In FY22, there were a total of 1,03,546 employees and the workforce was 5,92,195. Attrition in IT services was 17.4% in the year. The company said the company had free cash flow of Rs 39,181 crore at the end of the financial year and returned cash of Rs 31,424 crore to shareholders through share buybacks and dividends.
For the fourth quarter, the company has proposed a final dividend of ₹22 per share. The average salary increase in FY 2012 was 6 to 8% and there will be a similar hike in FY 2013, Mr. Gopinathan said.
The company said it will recruit 40,000 employees in the current year. It added that it is unlikely to face any adverse effects due to the Russian war.