BFSI turnaround drives robust start to FY19
Net Income growth of 17.2% YoY
- $ Revenue crosses $5Bn mark; grows +10% YoY
- North America growth highest in 12 quarters
MUMBAI, July 10, 2018: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IndAS and IFRS as on June 30, 2018.
Financial Highlights for Quarter Ended June 30, 2018
- Revenue at $5.051 Bn; +10% YoY
- Constant Currency Revenue growth at +9.3% YoY
- Net Income at $1.082 Bn; +17.2% YoY
- Operating Margin at 25%
- Earnings Per Share at $0.28, up 19.8% YoY; Dividend per share of Rs. 4.00
Proposed record date 18/07/18; Payment date 25/07/18
Business Highlights for Quarter Ended June 30, 2018
- BFSI vertical growth accelerates: +4.1% YoY
- North America rebounds on BFSI and Retail recovery: +7% YoY
- Digital revenue at 25%, up 44.8% YoY
- 2 new clients in $100M+ band, 13 clients added in $5M+ band sequentially
- World’s largest Agile-ready workforce: 242,000+ employees Agile trained
- Total employees: 400,875; IT Services attrition rate at 10.9% LTM
Commenting on the Q1 performance, Rajesh Gopinathan, CEO and MD, TCS said, “We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders. Our Banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum. With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future.”
Rajesh added, “Customers across verticals and markets are embracing our Business 4.0 thought-leadership framework and accelerating their digital transformation journeys. Our contextual knowledge, full spectrum capabilities and investments in research and innovation are making us their preferred partner for their growth and transformation initiatives.”
N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said, “It has been an excellent quarter, with broad-based growth across all segments and good client additions. We are seeing strong demand in areas like cloud transformation, cyber-security and data privacy, and automation. Our investments in forward-thinking doctrines like the Machine First Delivery Model (MFDM™) and Location-independent Agile are giving customers immediate, measurable business benefits and speed to market.”
V. Ramakrishnan, Chief Financial Officer, said, "Disciplined execution, accelerating growth and currency support helped us mitigate the impact of wage increases during the quarter. This strong start gives us greater confidence in our ability to get our operating margin to our preferred range, while continuing to fund the digital investments that are differentiating us in the marketplace.”
YoY: Year on Year; QoQ: Quarter on Quarter. Growth rates in constant currency unless specified otherwise.
About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of IT, Business & Technology Services, and engineering. This is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India's largest multinational business group, TCS has over 400,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $19.09 billion for year ended March 31, 2018 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS' proactive stance on climate change and award winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com.
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Phone: +91 22 6778 9999
Phone: +91 22 6778 9999