TCS Q4 net profit dips marginally to Rs 8,049 crore; key highlights of results, dividend per equity share


New Delhi: The nation’s largest software program companies agency Tata Consultancy Services (TCS) on Thursday (April 16) reported a marginal drop in consolidated net profit to Rs 8,049 crore for March 2020 quarter, in accordance to the corporate’s regulatory submitting. In the corporate’s Board assembly held at the moment, the Directors have declared a remaining dividend of Rs 6 per equity share. 

Rajesh Gopinathan, Chief Executive Officer and Managing Director mentioned, “Amidst the tumult of the last few weeks, our priority has been to safeguard the health and well-being of our employees while continuing to support our customers’ mission-critical activities globally. The agility, resilience, and adaptability of our operating model were put to the test, and it has emerged stronger and more proven than ever before. This has further strengthened our customers’ confidence in TCS. Many of them have reached out to us to express their appreciation and gratitude for how our teams went above and beyond to help them keep their businesses running under very difficult circumstances. I want to thank all the TCSers who showed immense grit, resolve, and ingenuity, in the true spirit of TCS, to make this possible.” 

R Gopinathan additional mentioned, “The pandemic completely reversed the positive momentum that we had started seeing in some of our biggest verticals in the first half of the quarter. On the positive side, we had very strong deal closures during the quarter. In fact, our order book this quarter is the largest ever, from the time we started reporting the metric. Organizations across the world are realizing the need for operational and systems resilience. Many of the large deals we signed during the quarter address precisely that need. They are core transformation programs that leverage the power of technology to make our customers’ operations leaner, foster, and more resilient.”

TCS Q4 phase highlights

Industries: Revenue progress was led by life Sciences & Healthcare (+16.2%), Communications & Media (+9.3%) and Manufacturing (+7%). Retail & CPG grew +4.2% and Technology & Services grew +3.5%. BFSJ income declined 1.3%.

Markets: Growth was led by Europe (+11.9%) and UK {+5.4), Latin America grew +3.9%, Asia Pacific grew +3.5% and MEA grew+ 1.3%. North America grew +0.2% whereas 1ndia .declined 1.9%.

Services:

1. Consulting & Services Integration: Enterprise Agility, as a key enabler of enterprise-wide working mannequin transformation targets, enabled a number of strategic wins. Amidst the present disaster, C&S1 has been serving to clients re-orient provide chains to guarantee resilience and meet important wants. The different driver of progress was engagements round TCS’ Finance Transformation choices. 

2. Digital Transformation Services: MFDM and Bringing Life to Things frameworks continued to acquire mindshare and powered a number of transformational engagements. Engineering, Cloud, Cyber Security and Enterprise Intelligent Automation services-led progress through the quarter.

3. Cognitive Business Operations: TCS’ improvements round AI/ML-enabled operations, scaling of Agile DevOps, and next-generation office options which offer multi-channel, personalised and built-in expertise for customers had been progress drivers. Other progress areas included choices round cognitive HR, digital F&A and digital buyer expertise. 

Research and Innovation

As on March 31, 2020, the corporate has utilized for five,216 patents, together with 210 utilized through the quarter, and has been granted 1,341 patents.

Human Resources 

TCS employed 24,179 workers on a net foundation in FY 2020, taking on the entire headcount to 448,464 as of March 31, 2020. The workforce is younger and really numerous, comprising 144 nationalities and with ladies making up 36.2% of the workforce.

TCS’ natural expertise improvement initiatives continued to ship industry-leading outcomes. Employees logged 37.7 million studying hours in FY 2020, leading to over 335,000 workers getting skilled on a number of new applied sciences, and over 417,000 skilled on Agile strategies. The firm continues to be the employer of selection, with industry-leading expertise retention. IT Services attrition fee (LTM) was at 12.1%.

“Amidst this unprecedented situation, we ramped up our associate engagement across four dimensions – personal wellbeing, work engagement, learning & development, and social engagement. The outcomes have been excellent. Despite the stresses of being under a /lockdown, morale is good. We have seen associates show a stranger sense of ownership of outcomes,” mentioned Milind Lakkad, Global Head, Human Resources. 

“In great crises lie great opportunities. Our Secure Borderless Workspaces model, which takes location agnosticism to the next level, represents the future of work and will improve our associates’ quality of life. By 2025, we believe our associates will spend only 25 per cent of their time in an office,” he added. 

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