• Highest Ever Order Book TCV: $11.3 billion in Q4; $34.6 billion in FY 22

• Highest Ever Incremental Revenue in a Year: $3.533 billion

• Q4 Revenue $6.696 billion, +11.8% (CC: +14.3%)

• FY 22 Revenue $25.707 billion, +15.9% (CC: +15.4%)

• Industry-leading Profitability: Operating Margin 25.3%, Net Margin 20% in FY 22

• FY 22 Net Income at $5.139 billion, +13.9%* YoY 

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

*Excludes legal claim provision in FY21

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.” 

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: “It is immensely satisfying to close the year with robust, broad-based growth, industry-leading margins and the highest ever order book. During the year, we took on technologically challenging, industry-first transformational programs and brought to bear the full power of TCS’ capabilities and that of our partner ecosystem, to successfully deliver market-changing outcomes. Our continued investments in building newer capabilities, our passion for innovation, our contextual knowledge and most importantly, our self-belief have been key to this, and these position us very well for continued success ahead.”

Samir Seksaria, Chief Financial Officer, said: “While continuing to make all the investments needed to support our growth aspirations, we managed the headwinds this year to deliver an industry-leading operating margin yet again. The successful completion of our fourth buyback in five years is another milestone in our shareholder-friendly approach to capital allocation.”

Milind Lakkad, Chief HR Officer, said: “With the highest ever net addition this year, consistently highest talent retention, benchmark talent development metrics, continued focus on health and wellbeing and numerous industry awards, we have reaffirmed TCS’ position as the #1 employer of choice.”

Q4 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.

Services: Demand continued to be strong during the quarter as well as the full year across all markets, industries, and services, with growth led by Cloud, Cyber Security, Enterprise Application Services and IoT & Digital Engineering.

• Consulting & Services Integration: C&SI continues to play a strategic role for many customers in accelerating their growth and transformation journeys. Supply chain momentum focused on optimizing and automating fulfillment and distribution processes. Consulting-led cloud modernization services continued to see strong demand. Global M&A activity drove continued growth for related services during the quarter.

• Cloud Platform Services: The multi-year technology cycle fueled by cloud adoption continued apace. Clients are investing to build a new future-ready digital core, reduce technology debt, host mission-critical workloads, provide a unified view and advance on their sustainability goals. Key services which led growth are application modernization leveraging cloud native application development, data platform modernization and migration services.

• Digital Transformation Services: There was robust demand for ERP transformation and modernization, intelligent products, connected plants, connected health, managed security services, design led customer experience transformation and sustainability. There was increased adoption of enterprise cloud solutions in the areas of e-commerce and customer experience across sales and service channels, supply chain, human capital, analytics and significant back-office transformation. TCS Crystallus™ continues to find strong resonance with customers for their industry innovations. As governments strengthen the privacy laws and minimize risk of data leakage due to ransomware, TCS’ “Privacy by Design” offering is gaining traction.

• Cognitive Business Operations: There were multiple deal wins powered by MFDM™ and Cognix™ for digital transformation of operations in the areas of data center and networks, finance and supply chain and customer experience. Other themes driving the growth in this quarter include integrated application and infrastructure operations and vendor consolidations. TCS Cognix™ continued to make strong strides with the installed base crossing 200 customers.

** Year on Year Growth in Constant Currency terms

Key Highlights

• Sun Life Financial, a leading international financial services organization providing insurance, wealth, and asset management solutions to individual and corporate clients, has partnered with TCS on a digital transformation journey to implement a modern, cloud-based content management platform to drive digital engagement across all channels, enhance business agility and maintain competitive advantage by building brand relevance, leveraging analytics and maximizing marketing ROI. TCS is helping build a scalable, robust and futuristic architecture with machine-first approach, optimized platform with seamless integration across digital ecosystem, creating exponential business value. 

“At Sun Life we put clients at the center of everything we do, we've been trying to create new opportunities for clients to interact with us digitally and continuously elevate the digital experiences we give to them. We partnered with TCS for our transformation program to move to a best-in-class content management platform. It was a significant undertaking with hundreds of global sites, multi-markets, and hundreds of stakeholders that we had to bring together on this implementation journey and the total value proposition was very strong with TCS combined with an element of trust that really was the tipping point for this partnership. TCS proven track record in successfully executing similar projects helps us at Sun Life know that we're in good hands.” 

• Alice Thomas, Chief Architect and Digital Technology Officer, Sunlife

• Selected by Payments Canada, the country’s largest payment organization, to transform its payment system operations and help implement the Real-Time Rail (RTR), the new real-time payments system that will allow Canadians to initiate payments and receive irrevocable funds in seconds, 24/7/365. TCS will leverage its deep knowledge of the Canadian payments industry and extensive experience in designing and implementing large payment systems for its Canadian financial services clients to help Payments Canada create and execute an integration roadmap for the RTR.

“With three decades of experience in delivering market infrastructure solutions, TCS will be a valuable partner in the delivery of the Real-Time Rail. Testing and deployment is a critical step in the introduction of the new real-time payment system and we’re excited to work with TCS to execute on this next step for the RTR as we help shape the future of payments in Canada.”

• John Cowan, Chief Technology & Operations Officer, Payments Canada

• Selected by NXP Semiconductors Netherlands B.V., a global semiconductor company, to modernize their ERP landscape. TCS will design the migration approach and manage the change leveraging its contextual knowledge and TCS Crystallus™ to ensure a flawless transition. The composable ERP and improvements in UX will set the foundation for future initiatives.

• Selected by the Ministry of External Affairs, GoI, for the second phase of the Passport Seva Program, the country’s largest mission-critical e-governance program till date, following TCS’ successful implementation of the first phase when it digitized all the processes, set global benchmarks in timeliness, transparency, and reliability and delivered a world-class experience at the TCS-run passport centers across the country, making the service immensely popular and a source of national pride. 

• TCS has been proactively engaged with HARTMANN on a future product line to add to and expand their wound management product portfolio using a Digital Health solution for the healthcare professionals and patients. TCS will design and co-develop the solution with PHAG. This system will leverage technologies such as IoT, Cloud and Mobility.

• Selected by a leading US based pharmacy retailer and wholesaler to future-proof and secure their core infrastructure. TCS will transform its data centers and create a hybrid cloud stack with self-healing capability, powered by the TCS Enterprise Cloud platform and cognitive automation to deliver next generation infrastructure services. This will improve availability of business applications, enhance user experience, and deliver greater agility, flexibility, and scalability.

• Selected by a large Swedish Retail company, to transform to an enhanced Edge platform & Software Defined Network as part of its vision to migrate its IT landscape into a multi cloud resilient architecture.

• Selected by a US based leading wholesale distributor of food and grocery, as the strategic partner in transforming its business model to enable B2B & B2C.  TCS will build a digital core solution on a leading hyperscaler platform to bring agility in logistics management (order management, warehouse management and distribution capabilities) and cloud native data & analytics capabilities to uncover insights in customer journeys.

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.

Awards and Recognition 

Business Leadership:

• Ranked #1 in customer satisfaction across Europe, for the ninth consecutive year, in the largest independent survey of 1,800 CxOs from top IT spending organizations in Europe by Whitelane Research. TCS was ranked #1 in UK, France, Netherlands, BeLux, Switzerland, Sweden, Norway and Finland.

• Recognized by Brand Finance as the second most valuable brand in IT services globally, moving up one place in 2021. TCS’ new brand articulation `Building on Belief’ has resonated strongly with customers and helped the company expand its participation in their growth and transformation initiatives.

• Won 3 awards in partnership with clients at the DevOps Excellence Awards 2022 in UK for Best Automation Project (with Aviva), Best Use of Compliance as Code (with Nationwide Building Society) and Best Use of Microservices/Containers (with Lloyds Banking Group)

• Ranked the #1 Engineering Services PEAK Matrix Provider of the Year 2022 by Everest Group for the highest consolidated score across five engineering services PEAK Matrix evaluations published in 2021, in each of which TCS was ranked a Leader.

• Won the Best Indian Investment Award from the Indo-French Chamber of Commerce & Industry for TCS’ commitment to the French economy through sustained long-term investments in talent development, innovation, and regional growth  

Employer Brand

• Recognized by Confederation of Indian Industries (CII) with the Role Model in HR Excellence and Prize for Leadership in HR Excellence awards at the CII HR Excellence Awards, for TCS’ consistent demonstration of mature and sustainable practices across all aspects of Human Resources Management. The Role Model award has been given only twice before in the last 12 years. 

• Ranked #1 in the LinkedIn Top Companies list of the best workplaces for career growth in India. TCS topped the list in measures of ability to advance, skills growth, company stability, external opportunity, company affinity, gender diversity and spread of educational backgrounds.

• Recognized as 2022 Global Top Employer for the seventh year in a row by the Top Employers Institute.

• Ranked #3 in BT-Taggd survey of the Best Companies to Work For in India.

Innovation and IP

• TCS TwinX won the 2022 AI Excellence Award under the Product category. 

• TCS’ PredictCX won `Most Innovative Best Practice’ Award under the customer experience category at the CII DX Awards 2021. 

• TCS’ Risk Analytics Solution won Best Data Science Solution Award at the A-Team Group’s Data Management Insight Awards 2021.

Partner

• Recognized as the 2022 Americas Premier Partner of the Year by MuleSoft.

• Named the Ivalua APAC Partner of the Year 2021.

• Won SAP EMEA North Award for Service Partner Excellence 2022 for Integrated Delivery Experience. 

• Named International Partner of the Year 2021 by Ping Identity. 

• Recognized as GSI Partner of the Year 2021 by GoTo Partner Network. 

• Named Qlik's North America System Integrator of the Year.

• Won Automation Anywhere Partner of the Year 2022 awards in the categories Migration Partner - India, Knowledge Partner - India and Americas and AARI Solutions Partner - EMEA at the company’s annual Virtual Partner Summit. 

Industry Analyst Assessments

TCS was ranked a Leader in 24 competitive assessments published by leading research firms in Q4:

IFRS Financial Statements

Consolidated Statements of Comprehensive Income

For the year ended March 31, 2021, and March 31, 2022

(In millions of $, except per share data)

*Excluding legal claim provision

Consolidated Statements of Comprehensive Income

For the three-month periods ended March 31, 2021, and March 31, 2022

(In millions of $, except per share data)

Consolidated Statements of Financial Position

As of March 31, 2021, and March 31, 2022

(In millions of $)