TDCX reported profit of S$25 million for the fourth quarter ended December 2022, representing a 13.3 per cent decline from its Q4 FY2021 earnings of S$28.8 million.

The New York-listed digital customer solutions provider on Wednesday (Mar 8) said this was largely due to foreign exchange losses of S$6 million as the US dollar weakened in the last quarter of the fiscal year, resulting in higher other operating expenses of S$9.5 million compared to S$2.5 million previously.  

Earnings per share (EPS) stood at S$0.17 in Q4, down from the prior year’s EPS of S$0.20.

Revenue for the quarter grew 14.2 per cent year on year to S$176.7 million from S$154.8 million previously, driven mainly by higher contributions from sales and digital marketing services followed by omnichannel customer experience solutions services rendered.

Employee benefits expenses grew by 17.5 per cent on year to S$114.8 million from S$97.7 million due to higher employee headcount, wage adjustments and share-based payment expenses arising from the implementation of TDCX’s performance share plan in November 2021.

This also comes as the group’s average number of employees for the quarter grew 24 per cent year on year amid business volumes requirements of current campaigns over 2022, as well as staff resourcing requirements of new campaign launches in H2 of 2022.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The latest Q4 results bring Singapore-based TDCX’s earnings for the full year to S$104.9 million, up a marginal 1.1 per cent from its FY2021 profit of S$103.8 million.

FY2022 revenue grew 19.6 per cent to S$664.1 million from S$555.2 million in FY2021.

The latest revenue figures are slightly above the mid-points of the group’s forecast revenue range of S$655 million (*see amendment note) to S$670 million, and revenue growth percentage mid-point of 19.3 per cent.

Full-year EPS stood at S$0.72, down from S$0.81.

Adjusted Ebitda (earnings before interest, taxes, depreciation and amortisation) margins for the fourth quarter as well as full year under the review stood at 26.5 per cent and 30.1 per cent respectively, down from 34.8 per cent in Q4 of FY2021, and 33.3 per cent in FY2022.

Adjusted Ebitda figures exclude the effects of expenses incurred from the group’s performance share plan. 

For FY2023, the group is expecting to report 3 per cent to 8 per cent revenue growth year on year, with an adjusted Ebitda margin of 25 per cent to 29 per cent.

“With the Covid era largely behind us, we are optimistic about the continued recovery of sectors such as travel and hospitality and markets such as China”, said Laurent Junique, chief executive and founder of TDCX.

“While the economic challenges we saw last year are expected to have a spillover effect into 2023, we are focused on strengthening our capabilities through our network expansion strategy and initiatives to deepen our relationship with our clients,” he added.

Amendment note: An earlier version of this story incorrectly mentioned TDCX’s FY2022 guided revenue range as S$665 million to S$670 million, when it should have been S$655 million to S$670 million.