Strong Uptick seen in ‘Digital’ engagements across key verticals
Revenue at $ 4,036 million up 9.3 % Y-o-Y
MUMBAI, July 9, 2015: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS for the quarter ended June 30, 2015.
Business Highlights for Quarter Ended June 30, 2015
Commenting on the Q1 performance, CEO and MD, N Chandrasekaran said: “Demand from our core markets like North America and greater traction for ‘Digital’ solutions in key verticals like Financial Services, Retail and Life-Sciences has driven volumes and growth in Q1. Our significant investments in IP and platforms, digital capabilities and our execution track record gives us a firm foundation to capture growth in the current financial year.”
Chandrasekaran added: “Given the strong pipeline and market adoption of digital across industries, we are investing to train over 100,000 professionals this year in all relevant technologies.”
Rajesh Gopinathan, Chief Financial Officer, said: “Our disciplined approach to all aspect of operations have helped maintain operating margins within our stated range despite hedging volatility and the impact of our annual cycle of salary hikes and promotions. We continue to focus on optimizing our cash conversion ratios and investing in people and technologies ahead of our business needs.”
During Q1, TCS posted the incremental revenues of $136 million driven by strong growth across core markets led by North America, UK, Europe, MEA and Asia-Pacific. Growth among industry segments was led by Retail, Life Sciences, BFSI and Telecom. Asset-Leveraged solutions led the growth among service lines followed by Infrastructure, Assurance and BPS.
Select Key Wins
Key Wins in Digital Services and Solutions
IgnioTM
In June, TCS launched IgnioTM, a neural automation platform for enterprises, to help customers reimagine their technology and business operations. With its unique value proposition, IgnioTM is receiving very good traction across the customer base:
TCS BaNCSTM
Cloud Platforms
Digital Learning Platform
TCS has built and deployed a new Learning Platform to enable Digital training for 100,000 employees in this financial year. Immersive content has been created covering the entire gamut of Digital offerings. The new Digital Learning platform and allied infrastructure will enable ‘anytime-anywhere’ learning in a cloud environment
Innovation and Intellectual Property
As of June 30, 2015, the company has applied for 2359 patents, including 66 applied during the quarter. Till date the company has been granted 231 patents.
Human Resources
The total employee strength at the end of Q1 was 324,935 on a consolidated basis with gross addition of 20,302 associates (net addition: 5,279 employees). The utilization rate (excluding trainees) was at an high of 86.3% and that including trainees was 82.9%. The attrition rate (LTM) was seasonally higher at 15.9% including BPS. The percentage of women in TCS rose to an all-time high of 33.5% while the number of nationalities increased to 124.
“Our focus remains on making TCSers proficient in new technologies, giving them the tools to be more productive and building an engaged and diverse team of global professionals. This continues to yield results with our utilization rates being maintained at well over 85 per cent. The process of on-boarding this year’s campus trainees has also begun.” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.
Awards and Recognition
Business Leadership
Partner
Unaudited Condensed Consolidated Statements of Comprehensive Income For the three-month periods ended June 30, 2014, March 31, 2015 and June 30, 2015 (In millions of USD, except per share data)
Three-month period ended June 30, 2014 | Three-month period ended March 31, 2015 | Three-month period ended June 30, 2015 | |
Revenue | 3,694 | 3,900 | 4,036 |
Cost of revenue | 2,045 | 2,496 | 2,275 |
Gross margin | 1,649 | 1,404 | 1,761 |
SG & A expenses | 677 | 766 | 700 |
Operating income | 972 | 638 | 1,061 |
Other income (expense), net | 136 | 182 | 121 |
Income before income taxes | 1,108 | 820 | 1,182 |
Income taxes | 256 | 194 | 274 |
Income after income taxes | 852 | 626 | 908 |
Minority interest | 7 | 5 | 10 |
Net income | 845 | 621 | 898 |
Earnings per share in USD | 0.43 | 0.32 | 0.46 |
Unaudited Condensed Consolidated Statements of Financial Position As of March 31, 2015 and June 30, 2015 (In millions of USD)
As of March 31, 2015 | As of June 30, 2015 | |
Assets | ||
Property and equipment | 1,849 | 1,826 |
Intangible assets and Goodwill | 628 | 626 |
Accounts Receivable | 3,266 | 3,430 |
Unbilled Revenues | 612 | 633 |
Investments | 280 | 976 |
Cash and Cash equivalents | 298 | 384 |
Other current assets | 3,399 | 3,057 |
Other non current assets | 1,667 | 1,571 |
Total Assets | 11,999 | 12,503 |
Liabilities and Shareholders' Equity | ||
Shareholders' Funds | 9,185 | 9,038 |
Long term borrowings | 18 | 15 |
Short term borrowings | 39 | 47 |
Other current liabilities | 2,306 | 2,951 |
Other non-current liabilities | 305 | 300 |
Minority Interest | 146 | 153 |
Total Liabilities | 11,999 | 12,503 |
About Tata Consultancy Services Ltd. (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™,recognized as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 285,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $11.6 billion for year ended March 31, 2013 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.
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