TCS Q4 mega deal wins and improved demand outlook, analysts optimistic

Analysts remained optimistic about Tata Consultancy Services Ltd., citing mega deal wins and improved demand outlook as reflected by its headcount addition in the fourth quarter.

India’s largest software services provider won new deals worth $11.3 billion (Rs 85,816 crore) in the quarter ended March against $7.6 billion (Rs 57,717 crore) in the preceding three months, taking the total deals to $34.6 billion (Rs 2.62 lakh crore) for FY22.

Order wins, led by client spending on digital services, helped TCS’ revenue to rise for the seventh straight quarter. The company also added 35,209 employees on a net basis during the period.

Key Q4 highlights (QoQ)

• Revenue rose 3.5% to Rs 50,591 crore, compared with the Rs 50,263.1-crore consensus estimate.
• Net profit rose 1.6% to Rs 9,926 crore, compared with the Rs 10,067-crore forecast.
• Operating profit rose 3.2% to Rs 12,628 crore.
• EBIT margin was flat at 25%.
• Attrition inched up to 17.4% from 15.3% as of December.

BloombergQuint