Demand from major markets drives 3.1 % growth in $ terms

PRESS RELEASE

 

Demand from major markets drives 3.1% growth in $ terms

  • Strong deal closures during Q1 signal annual momentum
  • Digital revenue at 18.9% up 7.6% Q-o-Q; 26% Y-o-Y

MUMBAI, July 13, 2017: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS in dollar terms for the quarter ended June 30, 2017.

Financial Highlights for Quarter Ended June 30, 2017

  • Revenue at $4,591 million + 5.2% Y-o-Y; + 3.1% Q-o-Q
  • Net Income at $923 million (1.8%) Y-o-Y & (7.0%) Q-o-Q
  • Net cash from operations at 104% of Net Profit
  • Operating Margin at 23.4%
  • Earnings Per Share at $0.47

Business Highlights for Quarter Ended June 30, 2017

  • Volume Growth at 3.5%
  • IT Attrition rate at 11.6% LTM
  • Total employees: 385,809; Gross addition: 11,202 employees
  • 8 clients added in $1M+ band; 12 clients added in $10M+ band
  • 1 new client in $50M+ & $100M+ bands

Commenting on the Q1 performance, Rajesh Gopinathan, CEO and MD, TCS, said, “We have seen steady growth across industries in Q1. Robust volumes from major markets driven by good client additions across revenue bands and accelerating Digital adoption among customers have given us the right start to the year. We have had excellent wins across all markets and have a good deal pipeline across industries that positions us well for growth in FY18.”

Rajesh added, “As we go through the early stages of Business 4.0, enterprises are reimagining themselves as leaner, responsive data-centric organizations by embracing Agile, Cloud, Analytics and Automation. We have retooled our organization structures and go-to-market teams to remain relevant to customers and have introduced new service lines like Cognitive Business Operations and Digital Transformation services to capture these new opportunities.”

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, TCS, said, “Holistic growth across all industry segments in Q1, a strong order pipeline, as well as the closure of large platform-based transformation opportunities gives us the confidence that overall growth momentum will increase in the coming quarters.”

V. Ramakrishnan, Chief Financial Officer, TCS, said, "During the quarter high currency volatility including sharp rupee appreciation against the dollar resulted in Rs 650 crore loss in reported revenues. We remain disciplined in our financial management, stay focused on generating strong cash flows and invest in our digital business. Despite the impact of wage hikes in Q1, we continue to drive profitability to our targeted range.”

About Tata Consultancy Services Ltd (TCS)

Tata Consultancy Services is an IT servicesconsulting 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 ITBPSinfrastructureengineering 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 385,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $17.6 billion for year ended March 31, 2017 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. For more information, visit us at www.tcs.com

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