India’s largest IT player Tata Consultancy Services (TCS) on Monday reported a 7.4 per cent year-on-year rise in consolidated net profit at Rs 9,926 crore compared with Rs 9,246 crore in the same quarter last year.
Shares of Tata Consultancy Services on Tuesday gained nearly 1 per cent after the software services firm opened the fourth-quarter earnings season with a stellar set of numbers, crossing the Rs 50,000-crore revenue mark for the first time and recording 7.4 per cent year-on-year growth in net profit.
The market heavyweight stock opened the trade on a tepid note and later gained 0.73 per cent to Rs 3,723.50 on the BSE. It hit a high of Rs 3,723.50 and a low of Rs 3,650.05 so far during the trade.
The company had reported a consolidated profit after tax (PAT) of Rs 9,246 crore in the corresponding quarter last year. In the December quarter, its PAT stood at Rs 9,769 crore.
The consolidated revenue for TCS during the January – March period stood at Rs 50,591 crore, up 16 percent from the year-ago quarter, aided by all-around growth across business verticals, stable deal wins and an increase in transformation spends by corporates. Revenue has increased by 3 percent every quarter. In constant currency, the increase in revenue is 14.3 percent year-on-year (YoY).
The company had reported consolidated revenue of Rs 43,705 crore in the corresponding quarter a year ago. Its revenues during the October-December period came in at Rs 48,885 crore.
For the full-year period (April-March 2022), the consolidated profit was recorded at Rs 38,327 crore, which is a growth of 18 percent from a profit of Rs 32,430 crore reported for FY21.
TCS closed fiscal 2022 with a bang, crossing for the first time USD 25 billion annual revenue of Rs 1,91,754 crore, up 16.8 per cent, driven by the highest-ever incremental revenue of USD 3.533 billion and an all-time high order book.
In constant currency terms, revenue grew 3.2% sequentially and Ebit margin was flat sequentially at 25% due to supply-side pressures. Both these numbers were in-line with analysts’ expectations
Analyst Expectation
According to 28 analysts polled by Bloomberg, TCS was estimated to post revenue of Rs 50,355 crore while net profit is expected to come in at Rs 10,055 crore. Analysts predicted a broadly stable margin with attrition almost peaking out. Management commentary on the outlook on the growth environment was stated to be a key thing to watch out for.
Kotak Institutional Equities pegged growth in dollar revenues at 11 percent on year to $6,649 million. While constant currency revenues were expected to grow 12.9 percent on the year and 2.4 percent on a sequential basis.
It expected the company to report revenues of Rs 50,067 crore for the quarter at an annualized growth rate of 14.6 percent and a sequential rate of 2.4 percent.
Motilal Oswal Financial Services expected the company to report 12.3 percent growth on year in dollar revenues to $6,726 million. While revenue in rupee terms is expected to grow 15.7 percent on year to Rs 50,600 crore, a sequential rate of 3.5 percent.
