Q4FY22 landmark in terms of revenue, order book, TCS CFO Samir Seksaria says; gives margin guidance of 26-28%

Tata Consultancy Services (TCS) Chief Financial Officer Samir Seksaria termed the fourth-quarter earnings of the company for the financial year 2021-22 (Q4FY22) as landmark quarter in terms of incremental revenue and all-time high order book.

The CFO also gave the long-term margins guidance during a conversation with Zee Business Executive Editor Swati Khandelwal Jain on Tuesday. 

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In Q4FY22, the company’s consolidated net income stood at Rs 9,926 crore, up over 7 per cent year-on-year (YoY), while the consolidated revenue at Rs 50,591 crore, up almost 16 per cent YoY. The CFO said, TCS for the first time has crossed a milestone of Rs 50,000 crore in quarterly revenue. 

Geographically, the growth was mainly led by North America, followed by UK and Europe, similarly, the Retail category witnessed a maximum surge in Q4FY22 followed by manufacturing and life science in segment-wise growth, Seksaria said in a chat with Zee Business.

Explaining the steady margins, sequentially the company is witnessing supply-chain issues along with tactical interventions, to which we are doing whatever is required to the meet gap, however, the growth is being impacted.  

Besides, inflationary pressures, salary increments, increase usage of external consultancy, rise in man-power and discretional expenses are some other reasons, we saw margins being impacted, Seksaria noted, adding further that on a long-term basis we have built strategies and cost models to deliver margin in the band of 26-28 per cent in coming quarters. 

On the order book, the CFO mentioned that TCV (total contract value) stood at $ 11.3 billion with two mega-deals of over $1 billion. He added that the overall order pipeline is healthy and broad-based, however, we are positive but staying vigilant amid the given the macro conditions. 

With a net addition of 35,209 employees in Q4Fy22, which is the highest ever in a quarter, the company has around 6 lakh employees’ headcount, the CFO said, adding further that we managed the headwinds this year to deliver an industry-leading operating margin yet again.