TCS hits $25 billion revenue mark in CY 2021

Shares of TCS were currently trading 0.33% higher at Rs 3870.05 on the BSE.

The IT major's consolidated net profit rose 1.51% to Rs 9,769 crore on 4.31% increase in net sales to Rs 48,885 crore in Q3 December 2021 (Q3 FY22) over Q2 September 2021 (Q2 FY22).

On a year-on-year (YoY) basis, the IT major's net profit rose 12.27% and net sales rose 16.35% in Q3 FY22.

Constant currency revenue grew 15.4% YoY. Operating margin fell 1.6% YoY to 25% in Q3 FY22.

In dollar terms, Q3 revenue grew by 14.4% YoY to $6.524 billion.

Profit before tax rose 1.71% to Rs 13,191 crore in Q3 FY22 as against Rs 12,969 crore in Q2 FY22. Net cash from operations was at Rs 10,853 crore ie 111.1% of net income.

The board recommended a third interim dividend of Rs 7 per share. Record date is fixed on 20 January.

The board also recommended to buyback upto four crore equity shares for an aggregate amount not exceeding Rs 18,000 crore, being 1.08% of the total paid-up equity share capital, at Rs 4,500 per share. The buyback price is 16.66% premium to Wednesday's closing price.

All verticals of the company grew in the mid to high teens. Growth was led by Retail and CPG (20.4%), BFSI (+17.9%) and the Manufacturing vertical (+18.3%). Technology & Services grew +17.7%, Life Sciences and Healthcare grew +16.3% and Communications & Media grew +14.4%.

Among major markets, growth was led by North America (+18%) and Continental Europe (+17.5%) while UK grew +12.7%. Among emerging markets, growth was led by Latin America (+21.1%) and India (+15.2%), followed by Middle East & Africa (+6.9%) and Asia Pacific (+4.3%).

The company added 10 new clients in the $100 million+ bucket (total: 58). It added 21 new clients in the $50 million+ bucket (total: 118).

The company added 28,238 employees on a net basis, taking the total number of employees to 556,986 as on December 31, 2021. IT services attrition rate (LTM) in Q3 was 15.3%.

N Ganapathy Subramaniam, chief operating officer & executive director, said: "We continued our focus on growing organically and on developing the talent, methodologies, and toolkits for an ever-evolving technology landscape. This, coupled with our contextual knowledge and the passion and commitment of thousands of TCSers enabled us to deliver cutting-edge solutions during the quarter, and help our clients realize speed to value. We are also delighted to cross another important milestone in our journey, hitting the $25 billion revenue mark in CY 2021."

Samir Seksaria, chief financial officer, said: "Our sustained investment in our talent has helped us power strong growth despite a challenging supply environment. We remain focused on long term talent development as well as on tactical measures to mitigate the talent churn. We have exercised various operating levers in Q3 to mitigate the higher costs and manage our employee expense."

Tata Consultancy Services (TCS) is an IT services, consulting and business solutions organization. Shares of TCS fell 1.50% to Rs 3857.25 on the BSE today.

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