March quarter: $9.2-billion order win for TCS

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TCS released a powerful collection of figures for the March quarter on Monday, reporting $9.2 billion in order wins. Facing wage increases, revenues increased by 4.2 percent sequentially to Rs 43,705 crore, while margins increased by 20 basis points to 26.8 percent. The software services company posted an EBIT of Rs 11,734 crore, with a net income of Rs 9,246 crore, which was marginally lower than anticipated. At the end of March, free cash flows totaled Rs 37,968 crore.

Rajesh Gopinathan, managing director and chief executive officer, said the company was well-positioned to take advantage of the multi-year tech services opportunity while continuing to dominate traditional areas and gaining share in the growth and transformation opportunity. “We’re interacting with consumers upstream as they consider their transition plans. We’re re-configuring the service mixes from a distribution standpoint,” Gopinathan said.

TCS’ record quarterly order win of $6.7 billion, compared to an average of $6-7 billion, brings the annual tally to just under $32 billion and shows how sales will rise in the coming years. Not unexpectedly, the organization hired a net 19,400 employees in the quarter, the highest-ever quarterly recruiting figures and, once again, an indication of how it sees market success in the years ahead. At the end of March, the total number of employees was 4,88,649. According to Milind Lakkad, chief HR officer, the company relies on both internal and external talent to run the business and does not anticipate any supply issues. TCS ended FY21 with an all-time low of 7.2 percent net attrition.

BFSI was up 7% quarter-on-quarter, retail and CPG were up 4%, life sciences and healthcare were up 3.8 percent, manufacturing was up 3.9 percent, technology & services were up 2.8 percent sequentially, and communications and media were up 1.8 percent. Life sciences and healthcare, banking and financial services, and technology and services all saw year-over-year growth, while the rest remained below prior-year levels.

Major markets led the way, with Continental Europe growing at 8.5 percent, North America at 3.9 percent, and the United Kingdom at 3.4 percent. Other regions saw strong growth, with the Middle East and Africa up 4.2 percent, India up 2.8 percent, Latin America up 2.5 percent, and the Asia Pacific up 1%.   

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