With the Covid-19 pandemic hitting the economy in early March last year, the technology sector fell among the worst-hit of all, stalling trade, losing overseas businesses and having to shift complete systems and employees online, affecting costs and billing time.
However, by the second quarter of FY21, these (tech) companies were back on track and boomeranged, due to complete dependency of businesses all around the globe on large deals of online tools and cloud computing among others.
India’s leading IT giant Tata Consultancy Services has crossed its estimated rise in revenue for the fourth quarter of FY21, ending March. This is the company’s third straight quarter showing an upward trend in revenue hike.
TCS’ Rev Hiked by 4% in Q4
Clients’ demand for a digital overhaul of their businesses, to attenuate the disruptions caused due to the pandemic, has led to a surge in orders and thereby profits for Indian IT companies.
In a similar outcome, the Mumbai-based IT giant has recorded a 4% rise in revenue to Rs 43,705 crore in the quarter ended March, compared to its preceding quarter.
This is the company’s third straight revenue hike. Its revenue in terms of dollars increased sequentially by 5% to $5,989 million.
The company also reported a 14.9% rise in its consolidated net profit at Rs 9,246 crore for the fourth quarter ending March 31, 2021, compared to Rs 8,049 crore in the same period last year.
TCS CEO & MD Rajesh Gopinathan 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 FY22 will be to engage with clients in their growth agenda, propelled by innovation and leverage of collective knowledge.”
TCS Performance Highlight (Q-o-Q)
According to the company filings and information from Bloomberg,
- Against an estimated growth of 3.6%, the net profit grew by 6.26% to Rs 9,246 crore.
- The bottomline of FY21 too, witnessed a 3% hike compared to last year and stood at Rs 33,388 crore.
- Company’s operating profit exceeded its estimated growth expectation of 3.8% and grew by 4.92% to Rs 11,734 crore.
- The operating margin too grew from 26.6% to 26.8%.
If we highlight TCS’ segment-wise performance, it will look like this:
- Revenue of the BFSI (banking financial services and insurance) segment grew by 5.4% compared to the previous quarter (Q3 FY21).
- The manufacturing segment recorded a revenue growth of 4.2%.
- The retail and consumer business segment’s revenue grew by 3.54%, while that of
- Communication, Media & Tech segment grew by 0.9%.
- All the remaining segments combinedly showed a growth of 3.9%.
Additionally, the company also added 19,388 employees in Q4, its highest ever addition in any quarter, taking the total additions in the year to 40,185.
“The workforce continues to be young and very diverse, comprising 154 nationalities and with women making up 36.5% of the workforce”, stated the IT major.
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