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.

To stay up-to-date on TCS global news, follow @TCS_News.

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Strong Digital Demand Drives Double Digit Growth at TCS

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Strong Digital Demand Drives Double Digit Growth at TCS

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