Tata Consultancy Services Ltd.’s revenue rose for the seventh straight quarter on order wins as clients continued to spend on digital services.
Business Environment
“We are closing FY22 on a strong note, with mid-teen growth and adding maximum incremental revenue,” said Rajesh Gopinathan, managing director and chief executive officer. Increasing participation in our customers’ growth and transformation journeys, and all-time high order book provide a strong and sustainable foundation for continued growth, he said.
TCS’ operating margin stood at 24.96% against 25.03% at the end of the third quarter ended December.
"We are going to continue the momentum on hiring starting this year with a similar 40,000 target as FY22, and go higher as we go along," he said. Gopinathan said the attrition will "optically go up for next two quarters" on the last 12-month basis before coming down.
The BFSI and communication segments continued to drive TCS’ growth in Q4. Retail and manufacturing, however, outperformed other segments.
"The total contract value will fall back to $8-8.5bn on a quarterly level. $11.3 billion was due to two mega deals of close to a billion each," Gopinathan said.
Gopinathan highlighted that North America has been driving growth for the last few quarters. BFSI comes off the large base and still continues to grow, he said.
Retail, impacted the most during pandemic, ended the quarter with a revenue of over $1 billion. The company ended the year with more than net addition headcount of 100,000 employees, he said.
Shares of TCS closed 0.29% higher ahead of the results on Monday compared with a 0.62% decline in NSE Nifty 50.
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