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View All NewsIndia – Tata Consultancy Services Q4 revenue and profits show uptick
Tata Consultancy Services (TCS), the IT services firm, reported revenue rose 5.9% on a constant currency basis in its fiscal fourth quarter ended 31 March 2021. Net income was up 15.6%.
| ($ millions) | Q4 2020 | Q4 2019 | Change | Constant Currency |
| Revenue | 5,989 | 5,444 | 10.0% | 5.9% |
| Gross Profit | 2,470 | 2,286 | 8.0% | N/A |
| Gross Margin | 41.2% | 41.9% | ||
| Operating Income | 1,608 | 1,366 | 17.7% | N/A |
| Net Income | 1,267 | 1,096 | 15.6% | N/A |
Growth was led by major markets with Continental Europe up 11.7% year on year, North America (+5.9%) and UK (+1%).
Other markets grew well: Middle East & Africa (+10.6%), India (+11.2%), Latin America (+1.5% YoY), and Asia Pacific (+1.5%).
All verticals showed good sequential growth, but a couple continued to lag prior year level – BFSI (+13.3% year-on-year), Retail and Consumer Packaged Goods (-0.9%), Life Sciences and Healthcare (+19.3%), Manufacturing (+1.3% YoY), Technology & Services (+3.9%) and Communications & Media (-4%).
V Ramakrishnan, Chief Financial Officer, said, “I am very pleased with our performance in Q4. This caps three quarters of consistently robust performance in a pandemic year, and gives us a strong exit from FY 21. Our Q4 margins are a validation of our strong belief that it is possible to win mega-deals, post industry-leading growth, continue to invest in our people and in newer capabilities, and still deliver industry-leading profitability. All the investments that we have been making over the years position us strongly to expand our footprint in the large growth and transformation opportunity.”
In Q4, TCS added 19,388 employees to its rolls on a net basis, its highest ever net addition in a quarter. The total headcount stood at 488,649, a net addition of 40,185 during the year.
TCS also published full year results. Revenue stood at USD 22.17 billion, up 0.7% when compared to the previous year, but down 0.8% in constant currency.
On a full year basis, Life Sciences and Healthcare (+17.1%), BFSI (+2.4%) and Technology & Services (+0.2%) showed growth while other verticals continue to be below prior year levels. On a full year basis, with the exception of Continental Europe which grew +5.5%, all other markets continue to be in negative territory compared to the prior year.
Shares in Tata closed on Monday at INR 3,246.55 (USD 43.21), down 2.27% on the day. The company has a market cap of INR 11.48 trillion (USD 152.80 billion).