TCS reports PAT of Rs 8,093 crore; no employee lay off

On Thursday, India’s largest IT firm, Tata Consultancy Services reported its fourth quarter result of FY20. Its consolidated revenue for the quarter was at Rs 39,946 crore which largely flat compared to Rs 39,854 crore in the previous quarter of the same fiscal year.

EBIT during the quarter too remained largely flat at Rs 9,996 crore as against Rs 10,871 crore in Q3FY20. EBIT margin was at 27.5 per cent marginal improvement from 27.3 per cent in the previous quarter.

Profit after tax for the quarter stood at Rs 8,093 crore, as compared to Rs 8,143 crore in the previous quarter while, PAT margin was at 20.3 per cent.

The board of directors has recommended a final dividend of Rs 6 per equity share for FY20.

In the year 2019-20, the company reported consolidated revenue of Rs 1,56,949 crore, up by 7.1 per cent YoY while, PAT improved 2.8 per cent YoY to Rs 32,340 crore.

TCS hired 24,179 employees on a net basis in FY20, taking up the total headcount to 4,48,464 as of March 31, 2020. During Q4FY20, the company won a total contract value of US$ 8.9 billion. The company has said that it will not lay off any of its employees but added that it will not give salary hike this year. Further, the company’s management believes that long-term profitability model is not shaken by the pandemic and it expects to be back on track to Q3FY20 level performance by Q3FY21E. However, its management expects demand impact amid pandemic to hit Q1FY21E revenue, which would be similar to the global financial crisis of 2008.