TCS Financial Results Q1 FY 2020

PRESS RELEASE

 

Strong Digital Demand Drives Double Digit Growth at TCS

  • Q1 $ Revenue grows +8.6% YoY; Constant Currency: +10.6% YoY
  • Digital Revenue at 32.2%, Growth of 42.1% YoY
  • UK (+16% YoY) and Europe (+15% YoY) Continue to Shine
  • Net Margin at 21.3%; ₹ EPS Growth: 13% YoY

MUMBAI, July 9, 2019: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading global IT services, consulting and business solutions organization, reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending June 30, 2019.

Financial Highlights for Quarter Ended June 30, 2019

  • Revenue at $5,485 Mn, +8.6% YoY
  • Constant Currency revenue growth: +10.6% YoY
  • Net Income at $1,168 Mn, +8% YoY
  • Operating Margin at 24.2%; Net Margin at 21.3%
  • Earnings Per Share at $0.31, +10.2% YoY
  • Net Cash from Operations at 103.9% of Net Income
  • Dividend per share: ₹ 5.00

Record date 17/07/2019; Payment date 23/07/2019

Business Highlights for Quarter Ended June 30, 2019

  • Digital revenue: 32.2% of total, +42.1% YoY
  • UK, Europe and India lead growth: +16% YoY, +15% YoY and +15.9% YoY respectively
  • Continued investments in organic talent development:
    • Net addition of 12,356 employees: highest in 5 years
    • 315K+ employees trained in digital technologies
    • 361K+ employees in Agile methods
  • Industry-leading talent retention: IT Services attrition rate at 11.5% LTM

Commenting on the Q1 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said:“We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter.”

He added:“We are benefiting significantly from enterprises investing in Customer Experience to differentiate themselves in a Business 4.0™ world. Our lean forward strategy is working well and our customers are benefiting from the TCS innovation ecosystem. Customers appreciate our end-to-end capabilities, and our holistic approach to transforming customer journeys that enable rapid product innovation and speed to value.”

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said:“We continue to execute well and delivered some significant transformation programs to our customers during the quarter. Our platforms for the financial industry are doing well. I’m particularly pleased that our TCS BaNCS Global Securities Processing platform is the choice of two large global financial institutions during the quarter.”

He added:“Our diversified industry presence, comprehensive digital offerings, and agile way of working, coupled with our Business 4.0 framework, enable us to stay relevant to our customers. We are confident of the future as we embrace deeply the Machine First™ philosophy in delivering experiential and modern solutions to our clients.”

V Ramakrishnan, Chief Financial Officer, said: “We continue to invest in deepening our capabilities to help our customers in their transformation journeys. Additionally, our margins this quarter fully reflect the annual increments that we effected across the board in April. Sustained rigor in operations helped deliver strong cash conversion and EPS expansion.

IFRS Financial Statements

Unaudited Condensed Consolidated Statements of Comprehensive Income For the three-month periods ended June 30, 2018, and June 30, 2019

($ Million, except per share data)

 

 

Three-month period ended
 Jun 30, 2018

Three-month period ended
 Jun 30, 2019

Revenue

5,051

5,485

Cost of revenue

2,961

3,265

Gross margin

2,090

2,220

SG & A expenses

826

895

Operating income

1,264

1,325

Other income (expense), net

178

203

Income before income taxes

1,442

1,528

Income taxes

357

357

Income after income taxes

1,085

1,171

Minority interest

3

3

Net income

1,082

1,168

Earnings per share in $

0.28

0.31

 

Unaudited Condensed Consolidated Statements of Financial Position As of March 31, 2019 and June 30, 2019

($ Million)

 

As of March 31, 2019

As of June 30, 2019

Assets

Property and equipment

1,685

1,663

Right-of-use Assets

0

911

Intangible assets and Goodwill

581

588

Accounts Receivable

3,969

4,075

Unbilled Revenues

1,298

1,433

Investments

4,243

4,438

Cash and Cash equivalents

1,045

821

Other current assets

2,908

2,809

Other non-current assets

1,207

1,260

Total Assets

16,936

17,998

 

Shareholders' Funds

13,243

13,246

Long term borrowings

6

0

Short term borrowings

3

0

Other current liabilities

3,192

3,536

Other non-current liabilities

423

1,142

Minority Interest

69

74

Total Liabilities

16,936

17,998

 

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 business, technology and engineering services and solutions. 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 436,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $20.9 billion in the fiscal year ended March 31, 2019, 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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