Volumes, Digital drive broad-based growth in Q2
Revenue at $4.16 billion up 3% Q-o-Q, up 5.8% Y-o-Y
MUMBAI, October 13, 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 September 30, 2015.
Financial Highlights for Quarter Ended September 30, 2015
Business Highlights for Quarter Ended September 30, 2015
Commenting on the Q2 performance, N Chandrasekaran, Chief Executive Officer and Managing Director, TCS, said,“We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, Retail and Life Sciences verticals with UK and North America leading the markets.”
Chandrasekaran added, “We remain focused on partnering with clients in multiple business dimensions to help them strategize and execute their Digital roadmaps. Given the growing market adoption of Digital, we continue to take new IP-led products and platforms to market successfully as well as invest in training our talent. Over 30,000 TCSers have already successfully trained in new technologies this year using our experiential Digital Learning Platform.”
Rajesh Gopinathan, Chief Financial Officer, TCS, said, “In a dynamic external environment, we continue to manage our operations with discipline and agility to ensure that we can support business growth. Our focus on profitability have increased our margins sequentially and generated strong cash flows while investing for future growth.”
Growth was broad-based in Q2 with all industries growing on a sequential basis led by BFS, Retail, Life Sciences and Travel & Hospitality. Core markets like UK, North America and Europe grew smartly along with emerging markets like Latin America, India and MEA. There was balanced growth across service lines led by Asset Leveraged Solutions.
Select Key Wins
Key Wins in Digital Services and Solutions
IgnioTM
IgnioTM is TCS’ neural automation platform that helps enterprises reimagine their technology and business operations. With its unique value proposition, IgnioTM is receiving very good traction across the customer base:
TCS BaNCSTM
Digital Learning Platform
TCS has built and deployed a new Learning Platform to enable Digital training for 100,000 employees in this financial year. Thirty thousand employees have already undertaken courses on the platform where immersive content has been created covering the entire gamut of Digital offerings. The new Digital Learning platform and allied infrastructure enables ‘anytime-anywhere’ learning in a cloud environment
Innovation and Intellectual Property:
As of September 30, 2015, the company has applied for 2432 patents, including 59 applied during the quarter. Till date the company has been granted 277 patents.
Human Resources:
The company continued to hire to support business growth. There was a total gross addition of 25,186 people (net addition of 10,685 employees) taking the total employee strength of 335,620 employees on a consolidated basis. The utilization rate (excluding trainees) was at 86 % and that including trainees was 82.3%. The attrition rate (LTM) was at 16.2% per cent including BPS.
“On a quarterly basis, our retention levels have improved this quarter with a net addition of over 10,000 employees in Q2. Our hiring continues to be strong with all time-high of over 25,000 employees joining us this quarter,” said Ajoy Mukherjee, Executive VP and Global Head, Human Resources.
Awards and Recognition:
Business Leadership:
Partner:
Leadership:
N Chandrasekaran:
Ranked 'Best CEO' in the Technology/IT Services & Software sector in Institutional Investor's 2015 All-Asia Executive Team rankings
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the three-month periods ended September 30, 2014, June 30, 2015 and September 30, 2015
(In millions of USD, except per share data)
|
Three-month period ended September 30, 2014 |
Three-month period ended June 30, 2015 |
Three-month period ended September 30, 2015 |
Revenue |
3,929 |
4,036 |
4,156 |
Cost of revenue |
2,184 |
2,275 |
2,318 |
Gross margin |
1,745 |
1,761 |
1,838 |
SG & A expenses |
690 |
700 |
713 |
Operating income |
1,055 |
1,061 |
1,125 |
Other income (expense), net |
93 |
121 |
103 |
Income before income taxes |
1,148 |
1,182 |
1,228 |
Income taxes |
265 |
274 |
296 |
Income after income taxes |
883 |
908 |
932 |
Minority interest |
11 |
10 |
6 |
Net income |
872 |
898 |
926 |
Earnings per share in USD |
0.45 |
0.46 |
0.47 |
Unaudited Condensed Consolidated Statements of Financial Position
As of March 31, 2015 and September 30, 2015 (In millions of USD)
|
As of March 31, 2015 |
As of September 30, 2015 |
Assets |
||
Property and equipment |
1,849 |
1,781 |
Intangible assets and Goodwill |
628 |
601 |
Accounts Receivable |
3,266 |
3,427 |
Unbilled Revenues |
612 |
642 |
Investments |
280 |
638 |
Cash and Cash equivalents |
298 |
351 |
Other current assets |
3,399 |
3,152 |
Other non current assets |
1,667 |
1,381 |
Total Assets |
11,999 |
11,972 |
Liabilities and Shareholders' Equity |
||
Shareholders' Funds |
9,185 |
9,601 |
Long term borrowings |
18 |
14 |
Short term borrowings |
39 |
9 |
Other current liabilities |
2,306 |
2,007 |
Other non-current liabilities |
305 |
300 |
Minority Interest |
146 |
41 |
Total Liabilities |
11,999 |
11,972 |
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™ (GNDM), recognized as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 387,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $17.58 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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Email: Kedar.shirali@tcs.com
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