One of India’s largest IT companies, Tata Consultancy Services, announced its profit after tax in the fourth quarter ended March 2022 on 11 April 2022. It showed a drastic improvement from last year’s net profit, which was Rs. 9,246 crores. The total revenue of TCS increased by 16%. Simultaneously, the banking and finance segment of TCS gained 11.2% more revenue amounting to Rs. 19,532 crores.
Here are more insights into the TCS Q4 results and the company’s achievements this year!
Comprehensive Overview of TCS Performance in 2022
After gaining its highest net profit in the fourth quarter, TCS surpassed the Rs. 50,000 crores revenue mark for the first time. It achieved this mark by seizing the opportunity created by the digital transformation wave flooding across the world.
The net profit of TCS earned in the full financial year amounted to Rs. 38,327 crores, showing a rise of 14.8%. After the TCS Q4 earnings result was out, its board also announced distributing a final dividend of Rs. 22 per equity share to its investors.
In addition, there was an increase in the consolidated revenue of TCS earnings for FY 2022, standing at Rs. 1,91,754 crores. This depicted a rise of 17% in the revenue, which was Rs. 1,64,177 crores in FY 2021. The rise in revenue percentage in respect of constant currency was 15.4% YoY.
Which Sectors Are Behind This Increase in Net Profit?
Even though the issues on the supply side of TCS disrupted the growth of the industry as a whole, the demand for its service remained intact. In fact, there was a strong requirement in the sectors of industries, markets and services.
The areas that added to this increase in demand included cyber security, IoT & digital engineering, cloud, and enterprise application services.
What Do TCS Authorities Have to Say About It?
The Chief Executive Officer and Managing Director, Rajesh Gopinathan, shared that the company is closing its last quarter on a strong note. It has made an impact by gaining the maximum it has earned so far and showing a mid-teen growth.
He also added that the company is now playing more part in the growth and transformation of their customer. This, in turn, will provide them with a robust and sustainable foundation for long-term growth.
Samir Seksaria, the Chief Financial Officer of Tata Consultancy Services, gave an overview of the growth in its different verticals. There was a 22.1% increase in the Retail & CPG sector, 19% in manufacturing, and 18.7% in communication and media. Also, its life science and healthcare and technology and services grew at 16.4% and 18% rates, respectively. However, there was a downfall of 12.9% in the BFSI sector.
As per the Tata Consultancy Services Q4 earnings result, analysts report strong growth in this company’s stocks. Thus, individuals who plan to invest in them can start trading by opening their Demat account via Angel One platform. It is simple to use and requires minimum data, thus perfect for a first-time investor. However, every individual must make this decision after analysing the TCS result, company financials, vision, mission, and statement.
Frequently Asked Questions
How much cash did TCS return to its shareholders?
The company returned Rs. 31,424 crores to its shareholders either as buybacks or as dividends. The free cash flow that the company is maintaining amounts to Rs 39,181 crores. This is 111.3% of its net income.
What is the current market capitalization of TCS?
The current market capitalization of Tata Consultancy Services as of 11:47 am, 12 April 2022, stands at Rs. 13.66 lakh crores.
When can investors expect to get the final dividend announced by TCS?
TCS will pay or dispatch a final dividend of Rs. 22 per share of Re 1 each to its investors. They can expect to get it on the 4th day before concluding its 27th Annual General meeting.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.