Tata Consultancy Services (TCS) for the quarter ended Mar 2021 reported a consolidated revenue of Rs 43705 crore, a growth of 4%QoQ and 9%Yoy. On USD terms the revenue for the quarter was USD 5989 million, a growth of 5%QoQ and 10%YoY. On constant currency (CC) basis the revenue was up 4.2%QoQ and 5.9%YoY. Growth in CC revenue on sequential basis is largely due to growth in revenue of all business verticals of the company especially the BFSI. On YoY terms the CC revenue growth was led all verticals barring that of Retail & CPG and Communication & Media.
The BFSI vertical which accounted for about 30% of the Q4FY21 revenue registered a growth of 7%QoQ and 13.3%YoY. Similarly the retail vertical that accounted for 15.5% of the revenue for the quarter was up by 4%QoQ but a fall of 0.9%YoY. The Life Sciences & Healthcare that accounted for 8.8% of the revenue was up by 3.8%QoQ and 19.3%YoY. The manufacturing that accounted for about 10.1% of revenue for the quarter was up by 3.9%QoQ and 1.3%YoY. Technology & Services that accounted for 8.7% of revenue was up by 2.8%QoQ and 3.9%YoY. The communication & Media (7.0% of revenue) was up by 1.8%QoQ and -4.0%YoY. The regional & others (20% of revenue) was up 1.7%QoQ and 0.8%YoY.
On CC basis, all markets showed good sequential and YoY growth, with North America growing 3.9%QoQ and 5.9%YoY. The UK registered a growth of 3.4%QoQ and 1.0%YoY. The continental Europe was up by 8.5%QoQ and 11.7%YoY.
As OPM expand by 20 bps to 29.3% (compared to 29.1% in sequential previous quarter) the operating profit was up by 5%QoQ to Rs 12801crore. But with other income up by 35% to Rs 931 crore, the growth at PBIDT was 6%QoQ to Rs 13732 crore. The interest cost was down by 25%QoQ to Rs 138 crore and the depreciation was up by 4% to Rs 1067 crore. Thus the PBT was up by 7% to Rs 12527 crore.
With taxation being up by 9% to Rs 3245 crore, the PAT was up by 6%QoQ to Rs 9282 crore. Eventually the net profit (after MI) was up by 6%QoQ to Rs 9246 crore with MI (being share of profit) stand higher by 38%QoQ to Rs 36 crore.
Quarterly result YoY comparison
Consolidated revenue was up by 9% to Rs 43705 crore and with the OPM expand by 180 bps to 29.3% from 27.5% in corresponding previous period, the operating profit was up by 17% to Rs 12801 crore.
Other income was up by 26% to Rs 931 crore. The interest cost was down by 45% to Rs 138 crore and the depreciation was up by 12% to Rs 1067 crore. Thus the PBT was up by 19% to Rs 12527 crore.
The taxation was up by 34% to Rs 3245 crore and thus the PAT was up by 15% to Rs 9282 crore. With minority interest stand lower by 18% to Rs 36 crore, the net profit was up by 15% to Rs 9246 crore.
Yearly performance
Sales for the period was up by 5%yoy to Rs 164177 crore. But with OPM expand by 160 bps to 28.4%, the growth at operating profit was 11% to Rs 46546 crore.
However hit by 32% fall in OI to Rs 3134 crore, the growth at PBIDT was moderated to stand up by 6% to Rs 49680 crore. The interest cost was down by 31% to Rs 637 crore and the depreciation was up by 15% to Rs 4065 crore.
Thus the PBT before EO was up by 6% to Rs 44978 crore. The EO Expense was up at Rs 1218 crore compared to nil in corresponding previous period and thus the growth at PBT after EO moderated to stand at 4% to Rs 43760 crore.
After accounting for taxation (up 14% to Rs 11198 crore), the PAT was down by 0% to Rs 32562 crore. With MI stand higher by 23% to RS 132 crore, the net profit was flat at Rs 32430 crore.
Management Comment
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: Our investments over the last decade in building newer capabilities, and in research and innovation, position us well for the multi-year technology services opportunity ahead. While we continue to dominate in our traditional areas of strength, we are making good progress in gaining share in the growth and transformation opportunity. Our focus going into FY 22 will be to engage with clients in their growth agenda, propelled by innovation and leverage of collective knowledge.
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: I am pleased to note that in FY 21, leading organizations partnered with TCS in their growth and transformation journeys. Many of them benefited from our refreshingly different consultative approach to shaping, contracting, executing, and measuring the success of transformation programs, always holding ourselves accountable for the results. He added: It is gratifying to bring down the curtains on FY21 with a solid performance on revenue, margins and deal momentum, all of which was possible due to the client-centric and `can do' attitude of our associates rising to the occasion, keeping safe and healthy, professionally executing on SBWS™ and learning all the new products, toolkits and ways of working.
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, and 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.
Other developments
The Board of Directors at its meeting held on April 12, 2021, has proposed a final dividend of Rs 15.00 per equity share.
Tata Consultancy Services Netherlands BV, a wholly owned subsidiary of the Company, as a part of an overall arrangement, signed a definitive agreement on January 1, 2021, to obtain entire equity stake in Postbank Systems AG (PBS), a subsidiary of Deutsche Bank AG, at an agreed consideration.
Tata Consultancy Services: Consolidated Financial Results
| 2103 (3) | 2012 (3) | Var. (%) | 2003 (3) | Var. (%) | 2103 (12) | 2003 (12) | Var. (%) |
| Sales | 43705 | 42015 | 4 | 39946 | 9 | 164177 | 156949 | 5 |
| OPM (%) | 29.3 | 29.1 | | 27.5 | | 28.4 | 26.8 | |
| OP | 12801 | 12208 | 5 | 10976 | 17 | 46546 | 42109 | 11 |
| Other inc. | 931 | 691 | 35 | 738 | 26 | 3134 | 4592 | -32 |
| PBIDT | 13732 | 12899 | 6 | 11714 | 17 | 49680 | 46701 | 6 |
| Interest | 138 | 183 | -25 | 251 | -45 | 637 | 924 | -31 |
| PBDT | 13594 | 12716 | 7 | 11463 | 19 | 49043 | 45777 | 7 |
| Dep. | 1067 | 1024 | 4 | 951 | 12 | 4065 | 3529 | 15 |
| PBT | 12527 | 11692 | 7 | 10512 | 19 | 44978 | 42248 | 6 |
| EO Exp | 0 | 0 | | 0 | | 1218 | 0 | |
| PBT after EO | 12527 | 11692 | 7 | 10512 | 19 | 43760 | 42248 | 4 |
| Tax | 3245 | 2965 | 9 | 2419 | 34 | 11198 | 9801 | 14 |
| PAT | 9282 | 8727 | 6 | 8093 | 15 | 32562 | 32447 | 0 |
| MI | 36 | 26 | 38 | 44 | -18 | 132 | 107 | 23 |
| Net Profit | 9246 | 8701 | 6 | 8049 | 15 | 32430 | 32340 | 0 |
| EPS (Rs)* | 100.0 | 94.1 | | 87.0 | | 90.1 | 87.4 | |
* On current Paid up equity capital (post buyback) of Rs 369.91 crore, Face value Re 1,
Figures in crore
EO: Extraordinary items
EPS is adjusted after EO and relevant tax
Source: Capitaline Databases |
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