Revenue at `59,381 crore | Growth of +12.6% YoY, +7% in CC
UK (+16.1% YoY), Life Sciences and Healthcare (+10.1%) and Manufacturing (+9.4%) lead growth
Net Income at `11,074 crore | Growth of +16.8% YoY
Order Book of $10.2 billion, book to bill ratio of 1.4
MUMBAI, July 12, 2023: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending June 30, 2023.
Highlights of the Quarter Ended June 30, 2023
K Krithivasan, Chief Executive Officer and Managing Director, said: “It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities.”
N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: “Our products and platforms achieved major milestones during the quarter with several transformational engagements going live. In the UK Life and Pensions administration space, we signed three new deals on our digital insurance platform, making TCS the undisputed leader in this market on any metric. We are proactively building differentiating capabilities in generative AI and actively working on such projects with our clients, delivering impact on technology, operations and client experience dimensions.”
Samir Seksaria, Chief Financial Officer, said: “We have gone ahead and rolled out our annual salary increase with effect from April 1st. Our operating margin of 23.2% reflects the 200 bps impact of this hike, offset through improved efficiencies. At the same time, we continue to make the investments needed to power our future growth, including expansion of our delivery and research infrastructure.”
Milind Lakkad, Chief HR Officer, said: “We remain focused on developing, retaining and rewarding the best talent in the industry, and enhancing their effectiveness by bringing them back to office to foster our culture. Our Return to Office initiative is picking pace, with 53% of the workforce already in office thrice a week. We have given a 12-15% raise for exceptional performers in our latest annual compensation review, and also commenced the promotions cycle. TCSers logged 12.7 million learning hours in upskilling themselves during the quarter in market relevant skills like generative AI, cloud, data and analytics. Our attrition continues to trend down and we expect it to be back in our industry-leading, long term range in the second half of the year. While we are committed to honor all the offers we have made, our focus will be on leveraging the capacity we built last year.”
Q1 Segment Highlights**
Industries: Growth was led by Life Sciences and Healthcare which grew 10.1% and the Manufacturing vertical which grew 9.4%. BFSI grew 3%, Retail and CPG grew 5.3%, Technology & Services grew 4.4% while Communications & Media grew 0.5%.
Markets: Among major markets, the United Kingdom led with 16.1% growth; North America grew 4.6% and Continental Europe grew 3.4%. In emerging markets, Middle East & Africa grew 15.2%, India grew 14%, Latin America grew 13.5%, and Asia Pacific grew 4.7%.
Services: Clients continue to reprioritize, preferring business critical projects and those with a faster ROI. Cost optimization, vendor consolidation and integrated operations are high on priorities. Enhanced flexibility, resilience, and establishment of a solid foundation continue to drive transformation initiatives. Growth was led by cloud modernization, cyber security, IoT and digital engineering.
There is strong interest across industry verticals to engage with TCS to explore generative AI use cases around productivity improvement, content creation and enriching customer interactions with personalized experiences. TCS is supporting these early initiatives through its co-innovation frameworks.
TCS’ point of view is that the full potential of generative AI is best realized through a holistic enterprise-wide initiative encompassing business, legal, risk & compliance, research and innovation, rather than by implementing multiple point solutions. It has launched an advisory offering to help customers create a holistic vision, strategy, business case and plan for enterprise-wide adoption of Generative AI.
** Year on Year Growth in Constant Currency terms
"I’m looking forward to continuing our journey with TCS and exploring the opportunities ahead of us. We have a strong foundation after many years of working together and they’ve proven their ability to deliver successfully for a scheme the size and complexity of Nest. This puts us in an excellent position to further advance our operations and build a truly digital offering that delivers a superior customer experience long into the future. The interests of our members are always our top priority and drive every decision we make and we’re rightly ambitious about what we can achieve for them. I’m confident that our partnership with TCS will enable us to develop our world class service to further support millions to enjoy a better retirement."
Chief Customer Officer, Nest
"As we move into the next phase of our transformation to reshape M&S for growth and value creation, we are delighted to extend our partnership with TCS. Together, we pivoted M&S to a digital-first business and achieved key business outcomes such as growing dotcom, driving loyalty through Sparks and realising significant cost and productivity efficiencies. Their industry advisory capabilities will help us accelerate the pace of business transformation by improving time to market; increasing the efficiency and effectiveness of M&S’ operating model; reducing technical debt; and infusing innovation for growth and value creation. This will enable us to achieve our goals of significantly increasing our active app userbase; further growing online sales volume; and building an efficient, resilient supply chain network."
Co-Chief Executive Officer, M&S PLC
"We partnered with TCS to reimagine our digital workspace operations with the vision to create ‘Best in class Digital Workplace Service’ for our employees and partners. Backed by their deep contextual industry knowhow, TCS deployed Cognitive and Integrated Operations model and leveraged Cognix™ value builders to embed advanced technologies such as AI, Automation and Self-healing. We were able to provide an intelligent, intuitive and proactive ‘Virtual Techlounge’ that significantly uplifted our employee experience, operational efficiency, and effectiveness.”
Chief Information Officer, EDF
“To translate the vision of creating a rich shopping experience for our customers, Norges Gruppen partnered with TCS. TCS deployed a future-ready, cognitive and resilient IT Operating Model that would be ‘always-on’ and provide a seamless experience for the shoppers. TCS’ leveraged its MFDM™ approach, Integrated Operations strategy, combined with its deep business contextual knowhow to ensure 100% availability of retail business applications. The automation of reports on order bookings and invoicing operations ensured superior experience and order processing on time.”
CIO, Norges Gruppen
“Agile and future-ready cargo operations have been the bedrock at Swiss World Cargo, enabling us to provide seamless SWISS quality to our air freight customers through our services. TCS has been our long-standing partner in this journey, supporting our finance and airline operations with their consulting-led approach, freight industry know-how, and innovative digital solutions powered by Cognix™. This partnership has helped us enhance even further our quality of service and our profitability, as we continue to deliver on our quality and work on our sustainable practices.”
Vice President and Head of Cargo Division, Swiss World Cargo
“TCS' Cognitive Business Operations has equipped our finance function with advanced capabilities to drive organizational growth and respond effectively to the dynamic business environment. Leveraging their deep financial knowledge, process re-engineering expertise and Cognix™ powered AI and automation solutions, TCS consolidated operations across 80+ countries and transformed us into an insights-driven finance organization, resulting in superior business outcomes.”
Chief Accounting Officer, Weatherford International
ABOUT TATA CONSULTANCY SERVICES (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 over 50 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 613,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $25.7 billion in the fiscal year ended March 31, 2022, 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 MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit www.tcs.com
Australia and New Zealand
Middle East & Africa