TCS Q4 Results: Company Reports IT Services Attrition of 17.4 Percent

TCS Q4 results have been announced and the company has announced the highest ever order book TCV of $11.3 billion in Q4, and $34.6 billion in FY 22

TCS reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending 31 March 2022.

Highlights of the FY 2021-22

• Client metrics: Added 10 clients in the $100 Mn+ bucket, 19 in the $50 Mn+ bucket, 40 in the $20 Mn+ bucket and 52 in the $10Mn+ bucket 
• Employee Metrics:
  • Net Addition: 103,546 employees
  • Employee Headcount: 592,195
  • Diversity: 153 nationalities; 35.6% women
  • IT Services Attrition (LTM): 17.4%
• Talent Development:
  • 3.5 million digital competencies acquired
  • Number of Contextual Masters crosses
  • 50,000 mark
• Free Cash Flow: $ 5.257 billion
• $ 4.179 billion of cash returned to shareholders through buybacks and dividends

Highlights of the Quarter Ended March 31, 2022

• Operating Margin: 25%; Net Margin: 19.6%
• Net Income: $1.314 billion, +3.7% YoY
• Strong Cash conversion: Operating Cash Flow 111.3% of Net Income
• Net Addition: 35,209 employees, highest ever in a quarter
• Final Dividend per share (proposed): `22
• Top Employer Brand
  • Recognized as 2022 Global Top Employer for the seventh year in a row by the Top Employers Institute 
  • Ranked #1 in India Top Company by LinkedIn, #11 in Australia and #19 in Netherlands, among the best workplaces for career growth 
  • Ranked #3 in the BT-Taggd survey of the Best Companies to Work For in India

Rajesh Gopinathan, chief executive officer and managing director, said: “We are closing FY 22 on a strong note, with mid-teen growth and adding the maximum incremental revenue ever. Increasing participation in our customers’ growth and transformation journeys, and an all-time high order book provide a strong and sustainable foundation for continued growth ahead.”

TCS Q4 Results and Full Year Segment Highlights

Industries:  All verticals grew in the mid to high teens. Growth was led by Retail and CPG (22.1%), Manufacturing vertical (+19%) and Communications & Media (+18.7%). Technology & Services grew (+18%) and Life Sciences and Healthcare grew (+16.4%) while BFSI grew (+12.9%).

On a full year basis, growth was led by Retail and CPG (20.6%), Manufacturing vertical (+19.4%), Life Sciences and Healthcare (+19.2%), BFSI grew (+16.7%), Technology & Services grew (+15.8%) and Communications & Media grew (+14.0%).

Markets: Growth among markets was led by North America which grew (+18.7%), UK grew (+13%), Continental Europe grew (+10.1%). Among emerging markets, Latin America grew (+20.6%), Middle East & Africa grew (+7.3%), India grew (+7%), and Asia Pacific grew (+5.5%). 

On a full year basis, among major markets, North America grew (+17.5%), Continental Europe grew (+15.1%) and UK grew (+14.3%). In emerging markets, Latin America grew (+18.2%), India grew (+16%), Middle East & Africa grew (+12.9%) while Asia Pacific grew (+6.7%) growth.

Research and Innovation

As on March 31, 2022, the company has applied for 6,583 patents, including 187 applied during the quarter, and has been granted 2,287 patents. For the full year, TCS filed for 704 patents and was granted 437.

Human Resources 

In Q4, TCS added 35,209 employees on a net basis, the highest ever net addition in a quarter. Employee headcount stood at 592,195, a net addition of 103,546 during the year, another all-time high. The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.6% of the workforce. 

TCS’ focus on organic talent development continues to produce best in class outcomes. In Q4, TCSers logged 22 million learning hours. For the full year, the company’s investments in learning and development resulted in the workforce acquiring 3.5 million digital competencies. The number of Contextual Masters crossed 50,000 – another key milestone in the journey to scale growth and transformation capabilities within the organization. 

The company’s philosophy of investing in people, and its progressive workplace policies have resulted in industry leading retention in an environment of increased churn. IT services attrition continued to climb, reaching 17.4%. However, incremental attrition has moderated.