TCS Q4 results in-line with estimates!

• Net Profit: TCS has reported a 6.3% on-quarter rise in net profit to ₹9,246 crore in Jan-Mar 21 period, in-line with analysts analyst estimates of ₹9,250 crore. 
• Revenue beats estimates: TCS’s revenue rose 4% on-quarter to Rs 43,705 crore, in-line with estimated Rs 43,600 crore. TCS’s revenue grew across all verticals. The table below shows the QoQ difference in sales for all verticals of TCS.



• Margins expand: Operating margin of the company expanded 0.2% to 26.8%. Net margin stood at 21.2%, up 1% over the last year. TCS’ revenue and margin performance came on the back of strong deal wins. The company reported deal wins of $6.8 billion during the quarter. The company managed to secure deal wins worth $9.2 billion, the highest ever quarterly deal wins in its history. 
• Dividend: The board recommended a final dividend of Rs 15 per share. This will be paid on Feb 3, 2021. The company has fixed Jan 16th as the record date. 

TCS has reported a decent set of numbers in Q4FY21, backed by strong deal wins and revenue growth across all segments. While the ongoing pandemic has affected various businesses, it has forced a tectonic shift in businesses processes to move towards greater digitization. This has provided a good opportunity for the IT industry. Given its leadership position in the market, TCS is well-placed to take advantage of this shift. 

To meet the growing demand, TCS added 19,388 employees to its rolls in Q4, its highest ever net addition in a quarter. The total headcount stood at 488,649, a net addition of 40,185 during the year. 

The company is entering FY21 on a strong note. While it has not provided any revenue guidance for the year, the company is confident of taking advantage of a strong demand pipeline going forward.