TCS ends FY22 with a record $35 bln in orders; Wipro buys CAS Group to add 138 industry consultants

Tata Consultancy Services reported the highest incremental revenue in the company’s history, for the fiscal year 2022. Revenues for the year ended March 31, 2022, rose $3.53 billion to $25.7 billion, a 15.4 percent increase over the previous fiscal year, in constant currency, TCS said in a statement yesterday after markets. Meanwhile, Wipro is doubling down on its acquisition strategy under CEO Thierry Delaporte. Notes: Tata Consultancy Services reported the highest incremental revenue in the company’s history, announcing its latest earnings results, after markets yesterday. Revenues for the year ended March 31, 2022, rose $3.53 billion to $25.7 billion, a 15.4 percent increase over the previous fiscal year, in constant currency. Revenue for the three months ended March 31 rose 14.3 percent in constant currency terms to $6.7 billion, TCS said in a press release. That is a 2.6 percent from $6.5 billion for the December quarter, matching Street expectations. TCS shares were little changed in early Mumbai trading this morning. TCS and other large IT services providers are benefitting from clients prioritising their tech budgets, after the Covid-19 pandemic, CEO Rajesh Gopinathan told reporters in Mumbai, in the company’s first in-person earnings press conference in two years. Sales were led by demand in America, the company’s biggest market, and a return to business among retailers, one of the most affected segments during the worst of the pandemic. TCS, India’s largest software services provider, ended the fiscal year with an order book of almost $35 billion, including the biggest total contract value accumulated in any one quarter, at $11.3 billion in Q4. The company won two very large orders in Q4 that were worth almost a billion dollars each, over the life of the contract, Gopinathan said. At the end of Q4 FY22, amid an intensifying war for talent, TCS saw staff churn increase by about 200 basis points from the previous quarter to 17.4 percent on a leading twelve months basis, and it will get worse in the short term Gopinathan warned. The company ended FY22 with 592,195 employees, with a net addition of 103,546 staff, as against a target of 40,000 recruits at the beginning of the fiscal year. Infosys, India’s second-biggest software services provider, is expected to report its Q4 FY22 earnings tomorrow after markets. Meanwhile, Wipro is doubling down on its acquisition strategy, as CEO Thierry Delaporte is attempting to drag the Bengaluru company back to growth that can be compared favourably with larger rivals Infosys and TCS. Wipro yesterday announced that it has acquired Convergence Acceleration Solutions (CAS Group), a US-based consulting and programme management company that specialises in large-scale business and technology transformation for the world’s biggest communications service providers. Wipro CEO Delaporte has been acquiring companies to consolidate and deepen Wipro’s ability to deliver large scale transformation projects for clients in multiple verticals. A year ago, Wipro acquired Capco, a fintech consultancy for $1.45 billion in its largest acquisition. Wipro didn’t provide financial details of the CAS Group purchase, which is smaller, and which brings about 138 consultants into the company’s fold. Theme music courtesy Free Music & Sounds: https://soundcloud.com/freemusicandsounds