TCS Q4 up 7.35% at Rs9,926cr as quarterly sales cross Rs50,000cr

12 Apr 2022 , 10:08 AM

TCS reported 15.76% growth in total sales revenues for the Mar-22 quarter on consolidated basis at Rs50,591cr. On a sequential basis, the revenues were up by 3.49%. In terms of verticals contributing to revenues, BFSI contributed Rs19,532cr, CMT Rs8,475cr, Retail Rs8,209cr and Life sciences Rs5,416cr. 

BFSI also contributed the most to the EBITDA of TCS in the Mar-22 quarter. TCS also reported highest ever order book in Q4 with TCV of 11.3 billion and full year TCV of $34.6 billion.

Full year FY22 revenues were up 16.8% yoy at Rs191,754cr, although constant currency growth was lower at 15.4% due to cross currency headwinds impacting the growth.

For the Dec-21 quarter, the consolidated operating profits were up 7.62% at Rs12,628cr. For the full year FY22, TCS reported operating margins of 25.3%, which had taken a hit in the third quarter on account of higher manpower and attrition costs.

The operating margins were nearly 170 bps lower on a yoy basis. For the fourth quarter, the operating margin stood at 25%. However, for the full year the IT services attrition saw a 200 bps spike to 17.4%, something uncharacteristically high for TCS, compared to previous years. However, the operating cash flows for the year stood at 111% of the net profit.

The consolidated Profit after tax (PAT) for the Dec-21 quarter was up 7.35% at Rs9,926cr on the back of higher revenue advantage getting neutralized by higher costs on the employee and attrition front. For the full year, the company recorded free cash flows of Rs39,181cr.

with a Q4 dividend pay-out of Rs.22 per share. For the full fiscal year, the company has paid back Rs.31,424 crore through a combination of dividends and buyback of shares. PAT margins tapered 21.16% in the Mar-21 quarter to 19.62% in the Mar-22 quarter. Even on a sequential basis, the net profit margins were lower by 36 basis points.

Financial highlights for Mar-22 compared yoy and sequentially

	TCS Ltd
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 50,591	₹ 43,705	15.76%	₹ 48,885	3.49%
Operating Profit (Rs cr)	₹ 12,628	₹ 11,734	7.62%	₹ 12,237	3.20%
Net Profit (Rs cr)	₹ 9,926	₹ 9,246	7.35%	₹ 9,769	1.61%
Diluted EPS (Rs)	₹ 26.85	₹ 24.97		₹ 26.41
OPM	24.96%	26.85%		25.03%
Net Margins	19.62%	21.16%		19.98%