The country’s largest software services firm Tata Consultancy Services (TCS) on Monday reported a 14.9 per cent rise in consolidated net profit at Rs 9,246 crore for the March 2021 quarter. This is against a net profit of Rs 8,049 crore in the year-ago period, TCS said in a regulatory filing. The IT major’s revenue grew 9.4 per cent to Rs 43,705 crore in the quarter under review, from Rs 39,946 crore a year ago.
“Our investments over the past decade in building new capabilities and in research and innovation, position us well for multi-year technology services opportunities. While we continue to dominate our traditional areas of strength, we are making good progress in achieving profit share in the opportunity for growth and change, said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS.
He added that the firm’s focus in FY22 will be to engage with customers in their growth agenda, driven by innovation and leveraging collective knowledge.
Net profit for the financial year ended March 2021 stood at Rs 33,388 crore (excluding legal claim provisions) from Rs 32,340 crore in the previous financial year. Based on the report, its net profit for FY 2011 stood at Rs 32,430 crore.
TCS in its consolidated statement of profit and loss for the year ended March 31, 2021 had provided Rs 1,218 crore (USD 165 million) for a legal matter (related to Epic Systems Corporation).
The filing said revenue grew by 4.6 per cent to Rs 1,64,177 crore in FY11 from Rs 1,56,949 crore in the previous fiscal. The Board of Directors has proposed a final dividend of Rs.15 per equity share.
TCS Chief Financial Officer V Ramakrishnan said the company’s performance in the fourth quarter “demonstrates a three-quarters consecutive strong performance in a pandemic year, and gives us a strong exit from FY2011”.
He added, “Our Q4 margins are a validation of our conviction that it is possible to win mega-deals, following industry-leading growth, continue to invest in our people and new capabilities, and still deliver industry-leading profitability. “
Ramakrishnan further added that all the investments made by the company over the years have firmly positioned it to expand its footprint into huge growth and transformation opportunities.
The order book for the fourth quarter stood at US$ 9.2 billion, which is the highest ever TCV (total contract value) in any quarter. The FY21 order book stood at USD 31.6 billion, up 17.1 per cent year-on-year, the filing said.
TCS declared the results after the market was closed. Its stock closed at Rs 3,241.45, down 2.43 per cent from its previous close on the BSE. Its rivals Infosys and Wipro will announce their March quarter and FY21 figures on April 14 and April 15, respectively.
In the fourth quarter, TCS added 19,388 employees to its rolls on a net basis, the highest net addition in any quarter so far, taking the total workforce to 4,88,649. The IT Services Attrition Rate (LTM) stood at 7.2 per cent.
“With the second wave of the pandemic upon us, our top priority is once again to secure the health and personal well-being of our employees around the world. We are looking at ways to expedite vaccination for eligible TCS where local regulations allow it,” said TCS Chief Human Resource Officer Milind Lakkar.