Tata Consultancy Services (TCS) kicked off the quarterly earnings on Monday. In TCS Q4 Results, a 14.9 percent increase in net profit at 9,246 crore for the quarter ended March 20, 2021, comparing to 8,049 crore in the same quarter the year before.
The order book stood at $9.2 billion in the fourth quarter, the highest ever posted by TCS in a quarter since the firm began releasing this metric.
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Results Summary
Revenue increased 9.4 percent to 43,705 crore from 39,946 crore in the previous fiscal year, according to the firm. Constant currency appreciation for the sector was 4.2 percent quarter on quarter (QoQ) and 5.9 percent year on year (YoY).
The operational margin was posted at 26.8 percent in the fourth quarter (Q4), a 0.2 percent increase QoQ and a 1.7 percent increase year on year. According to the firm, the board of directors has approved a Final Dividend of $15 per equity share.
The organization reported a net addition of 19,388 employees, the most ever in a quarter. TCS’ net profit for the period ending December 2020 was 8,701 crore, while revenue was 42,015 crore.
TCS’ income from its biggest vertical, Banking, Financial Services, and Insurance (BFSI), increased by 15% year on year to 17,559 crore (YoY). Its Q4 Order Book is $9.2 billion, the highest quarterly TCV ever.
Geographically, North America increased by 3.9% year on year, continental Europe increased by 8.5%, and the United Kingdom increased by 3.4% sequentially. Other regions rose well too, with West Asia and Africa growing at 4.2 percent sequentially, India at 2.8%, Latin America at 2.5 percent, and Asia Pacific at 1%.
Management :
“Our investments over the last decade in developing newer technologies, as well as in research and development, place us well for the multi-year technology services opportunity ahead,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director.
Although we remain dominant in our established areas of dominance, we are making strong progress in gaining a share of the progress and improvement potential. Our priority for fiscal year 22 will be to work with clients on their growth plans, which will be fueled by creativity and the pooling of collective expertise.”
“Our Q4 margins are a confirmation of our genuine conviction that it is important to win mega-deals, post industry-leading growth, continue investing in our individuals and in modern capabilities, and still achieve industry-leading profitability,” said V Ramakrishnan, Chief Financial Officer. All of the investments we’ve made over the years have put us in a good position to extend our presence in the large development and expansion potential.”
In a different exchange filing, the company disclosed that it has named Samir Seksaria as Chief Financial Officer, effective May 1, 2021, to succeed Mr. Ramakrishnan V., who will retire from the firm ‘s activities on April 30, 2021.
Stock Price
Before TCS Q4 Results, On the NSE on Monday, the IT firm ‘s stock closed 2.43 percent lower at 3,250.45 per share.
Other Results
Infosys will be the next company to declare their results on 14 April 2021 & Wipro will declare their results on 15 April 2021. All Eyes on Infosys now as they announced Buy back as well. Most of the brokerage firms has given a target of 1650+ on Infosys due to this buy back & strong results outlook.
Analysts anticipate that Infosys will declare a buyback of $1.2 billion to $1.9 billion (Rs 9,000 crore to Rs 14,200 crore) at its board meeting on 14 April 2021.
The last time Infosys repurchased stock was in March 2019. In the open market, the company purchased 2.36 percent of the paid-up capital (103.25 million shares) worth Rs 8,260 crore at Rs 800 per share.
Previous to that, in December 2017, Infosys made its first buyback of 11.3 crore equity shares for Rs 13,000 crore at Rs 1,150 per share.
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