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TCS FY21 net profit rises 0.27% to Rs 32,430 cr; revenue rises to Rs 1.64 lakh cr
TCS registered revenue from operations at Rs 164,177 crore during FY21, up 4.6 per cent from Rs 156,949 crore in FY20; the company also declared a dividend of Rs 15 per equity share
BusinessToday.In | April 12, 2021 | Updated 19:56 IST
Tata Consultancy Services (TCS) posted a 0.27 per cent increase on annual basis in consolidated net profit for the financial year ended March 31, 2021 at Rs 32,430 crore. The IT bellwether had recorded a net profit of Rs 32,340 crore in the previous financial year, the company said in a stock exchange filing on Monday.
Margins were the standout feature of TCS results. It was 26% plus despite a wage hike.
It was definitely very heartening to see that. But it has come about because of a number of things; one, growth has been across all the verticals. When there is growth there is also a margin pickup. We had explained it on multiple occasions in the past as well.
Second, of course, currency did not have a big impact either way.
Third, there is also the benefit of a fungible talent pool which means we are able to leverage that wherever people are located and also during these times, our utilisation, productivity have increased. More importantly, we have been trying to execute the work as efficiently as possible and drive the cost efficiencies.
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Our plan was to achieve rupee level revenue parity on a year-on-year basis by Q3 and constant currency by Q4. We have delivered constant currency revenue parity as well as margin parity by Q3, says
TCS.
The numbers have been strong, the management commentary has been quite charged. How long will the momentum sustain?
In many ways, it is important to go back and see this in perspective. We had spoken to you at length through the course of this pandemic and as you will remember right at the beginning of it, we said that the operating targets that we are working with is to get back to revenue parity by Q3 and that said that we will try to achieve rupee level revenue parity on a year on year basis by Q3 and constant currency by Q4. What we have actually delivered is constant currency revenue parity by Q3 and also the margin parity by Q3.
The order book for TCS is at an all-time high, almost turning $7 billion. How does one understand the order book momentum in terms of growth? Will it be double digit or is what we have seen in the last couple of quarters more like a sugar rush due to Covid?
In the last few quarters, we have been delivering a total contract of about $6 billion consistently. I will attribute this to proactive investments, innovative and market leading offerings. It is also an endorsement or an indication of the relative competitiveness that we have in the marketplace.
Overall, we are pleased that in this particular quarter, almost every unit of ours, including all the geographies and products and platforms, have shown growth. Not only have they grown, there has also been broad-based deal wins. Out of $6.8 billion, BFSI has contributed about $2.6 billion. North America has done $4 billion. Overall, we are very pleased with the momentum that we have both on the sales side as well as on the deal wins a
IT major Tata Consultancy Services on Friday posted a 7.18 per cent year-on-year (YoY) rise in its December quarter (Q3FY21) profit at Rs 8,701 crore. The firm had posted a profit of Rs 8,118 crore in the same quarter last year (Q3FY20). On quarter-on-quarter (QoQ) basis, the profit grew 16.4 per cent from Rs 7,475 crore posted for the quarter ended September 2020 (Q2FY21). The number beat Street estimate which was factoring-in a 3-8 per cent year-on-year (YoY) growth in Q3 net profit. ICICI Direct, for instance, had projected a 5.7 per cent YoY jump in PAT. The September quarter net profit had a post-tax one-time impact of Rs 958 crore due to provision for ongoing litigation with EPIC, the company said in a press release.