India’s largest software services firm Tata Consultancy Services ended the financial year on a high note by posting record revenue of more than 500 billion rupees (US$6.58 billion) in the fourth quarter, and a 7.4% rise in profit of 99.26 billion rupees, driven by robust demand from the North America market.
The Mumbai-based IT giant’s Chief Executive and Managing Director Rajesh Gopinathan said the quarter witnessed the highest incremental revenue addition ever of $3.53 billion and a record order book of $11.3 billion on the back of growth in all verticals. Total income rose 15.8% to 505.91 billion rupees ($6.66 billion) in the quarter.
On a sequential basis, net profit grew 1.6%, while revenue grew 3.5% over the October-December quarter.
The company added 10 clients in the $100 million-plus bucket, 19 in the $50 million-plus range, 40 in the $20 million range and 52 in the $10 million-plus bucket, he added.
The retail and manufacturing verticals that had seen a decline during the Covid-19 pandemic registered growth of 20.6% and 19.4% respectively during the quarter. The North American region continues to be the top earner with growth of 18.7% this quarter on a constant currency basis.
On an annual basis, Tata Consultancy Services’ revenue crossed the $25 billion mark for the first time. The company recorded revenue of 1.91 trillion rupees ($25.7 billion), with growth of 16.8% over the previous year. Net profit grew 14.8% to 382.27 billion rupees, as global demand picked up from the lows of the previous year.
Gopinathan also expressed satisfaction over the steps taken by the company to tap future opportunities in the cloud, digital and security segments, and said they are all paying off.
However, the attrition level went up to 17.4% in Q4 from 15.3% in the preceding quarter. It plans to add 40,000 employees in the coming fiscal year. The company employs more than 592,000 professionals deployed in 46 countries and is the largest private-sector employer in India.
Tata Consultancy Services has set a positive tone for the earnings season in the tech sector. Its rival and India’s second-largest software exporter Infosys will announce its results on April 13, HCL Technologies on April 21 and Wipro on April 29.