Three major tech giants namely TCS, Infosys and Wipro have announced their financial performance for the quarter ended March 2021 (Q1FY21) period. In the latest quarter, the three companies have posted double-digit growth in the bottom-line front on a year-on-year basis, however, sequential growth was recorded on a quarter-on-quarter basis. Also, margins, large deals and demand trends looked positive for these companies amid Covid-19.
TCS:
In Q4FY21, TCS witnessed a consolidated net profit of Rs9,246cr, registering a growth of 14.9% from a net profit of Rs8,049cr in the same period a year ago. Q4FY21 PAT grew by 6.2% against Rs8,701cr of the preceding quarter.
Meanwhile, the company's revenue stood at Rs43,705cr in the quarter under review, increasing by 5.9% compared to Rs39,946cr of Q4FY20 and also up by 4.2% from Rs42,015cr of Q3FY21. On a constant currency basis, the revenue growth was at 5.9% yoy and 4.2% QoQ.
Furthermore, the company's March 2021 quarterly net margin stood at 21.2%. Meanwhile, the company recorded an operating margin of 26.8% in Q4FY21, expanding by 0.2% QoQ and 1.7% yoy.
The major key highlights of the TCS Q4 result was the order book which stood highest ever at $9.2 billion in a quarter.
Infosys:
Infosys recorded a 17.1% yoy rise in net profit to Rs5,078cr in Q4FY21 compared to a profit of Rs4,335cr in the corresponding period of the previous year. However, Q4 PAT was sequentially down from Rs5,215cr of the preceding quarter.
Consolidated revenue from operations was at Rs26,311cr in Q4FY21 increasing against Rs23,267cr a year same period and Rs25,927cr of the previous quarter.
Notably, Infosys stated that it delivered strong FY21 performance with 5.0% CC growth, and growth accelerating to 9.6% in Q4 – in the face of a turbulent economic environment.
Infosys has provided revenue growth guidance of 12%-14% in constant currency for FY22. While the operating margin guidance is set 22%-24%.
Wipro:
Wipro registered a whopping 27.78% rise in net profit to Rs2,972.3cr in Q4FY21 compared to a profit of Rs2,326.1cr a year ago same period. The latest Q4 PAT is marginally up by 0.14% against Rs2,968 cr of profit posted in the preceding quarter.
The tech giant's revenue from operations was at Rs16,245.4cr in the quarter under review, increasing by 3.4% from Rs15,711cr in the corresponding period of the previous year.
IT Services Segment Revenue was at $2,152.4 million, an increase of 3.9% QoQ and 3.8% YoY. IT Services Operating Margin for the quarter was at 21.0%, an expansion of 344 bps YoY.
Wipro expects Revenue from its IT Services business to be in the range of $2,195 million to $2,238 million.