Category Archives: Business Services

Digital Demand Drives Growth for TCS in Q2FY2019

  • Digital revenue at 28%, up 60% YoY (CC)
  • $ Revenue grows +10% YoY; Constant Currency: +11.5% YoY
  • Operating Margin at 26.5%; +144 bps expansion YoY
  • Net Profit up 11.9% YoY

Mumbai, October 11, 2018: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to Ind AS and IFRS for the period ending September 30, 2018.

Financial Highlights for Quarter Ended September 30, 2018

  • Revenue at $5.215 Bn, +10 % YoY
  • Net Income at $1.119 Bn, +11.9% YoY
  • Operating Margin at 26.5%, an expansion of 1.4% YoY
  • Earnings Per Share at $0.29, +11.9% YoY
  • Net Cash from Operations at $1.042 Bn i.e. 93.2% of Net Income
  • Dividend per share of Rs. 4.00
    Record date 24/10/18; Payment date 30/10/18

Business Highlights for Quarter Ended September 30, 2018

  • BFSI, Retail verticals continue to accelerate: +6.1% and +15.6% YoY respectively
  • UK and Europe lead growth: +22.8% YoY and +17.4% YoY respectively
  • Superior client additions across bands: 4 new clients in the $100M+ band, 7 in the $20M+ band, 10 in the $10M+ band, 11 in the $1M+ band
  • World’s largest Agile-ready workforce: 279,000+ employees Agile trained
  • Net addition of 10,227 in Q2: highest in 12 quarters
  • Best-in-class retention: IT Services attrition rate steady at 10.9% LTM

Commenting on the Q2 performance, Rajesh Gopinathan, CEO and MD, said, “We are very pleased with our all-round strong performance in Q2. Revenue growth was driven by expanding demand for digital transformation across verticals, and continued acceleration in BFSI and Retail. Our industry-leading digital growth, and best-in-class client metrics bear testimony to our standing as the preferred partner in our customers’ growth and transformation initiatives.

He added: Our Business 4.0 thought leadership framework, contextual knowledge, and full stakeholder capabilities differentiate us, and drive demand for our solutions and services. Our Machine First Delivery Model (MFDM™) and Location-independent Agile methods are helping customers integrate automation deep within their enterprise, and orchestrate a more effective human-machine interplay to deliver superior customer experience at scale.

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said, “This has been a very good quarter, with strong demand in areas like analytics, cloud and automation. Our Quartz Blockchain Solution is gaining traction, and we are seeing the creation of nascent ecosystems which could transform markets. Our Enterprise Agile 2020 vision is shaping open, collaborative workplaces and Agile ways of working. This, along with MFDM, is driving intelligent automation and the discovery of a new meaning to work i.e. training the machines with the contextual knowledge, scaling businesses and creating ecosystems. This people-first approach to the machine-first world is seen as a key differentiator by our clients in driving growth, competitive edge and innovation in their businesses”

V Ramakrishnan, Chief Financial Officer, said, “It is encouraging to be back in our preferred range of profitability at the operating level. Even as we expand our investments to build on our lead in the Digital space, our disciplined operations, the improving growth trajectory and a supportive currency make our margins resilient.” Continue reading

Bond Market Stress for Crude Oil Producers

14% of the high yield bond market is from oil/energy producers, and that part is undergoing stress currently with the large correction in crude oil prices. Lower grade bond issuers with lower ratings are not going to be able to issue fresh bonds unless oil prices rebound. There are many highly leveraged oil/energy producers and service providers to the shale oil industry, and they are hit the hardest.

Directory

light-bulb-featuredWe are happy to feature the following organizations/ventures/companies in our business directory. Unlike most business directories out there, we have made the effort to personally interact with and verify each of the following entities, and hence we know that there are reliable and capable people behind them, and we are happy to reference them.

Energy

Financial Services

Healthcare

Agriculture & Farming

Software Solutions & Information Technology

 

IT Service Providers for SMBs

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We are happy to share with you the launch of ITXCHG (IT Exchange) a platform which aims to change the way IT Services are sourced by Buyers and delivered by IT Service Providers. Here’s a quick summary for your reference:

  • ITXCHG (www.itxchg.com) is a platform to help small and midsize businesses save time and money by efficiently finding, selecting and managing IT Service Providers, who are empaneled after a rigorous evaluation to ensure quality with good pricing.
  • The platform also provides a set of tools and services to assure IT Buyers a high quality project delivery.
  • IT Buyers sign-up and engage with an IT Service Provider for no charge.

How Business Coaching Helps Leadership Teams

Business coaching is an important tool that can offer a unique advantage if you want to coach your leadership teams, especially in a growing business. Business coaching can help to create an environment that is healthy for leadership growth that can play a key role as the business also grows.

It can help leaders to set strategic direction, develop marketing strategies and operating tactics in a low risk and non stressful manner that will improve the numbers and create a business that can run without being dependent on the business owner or CEO/Managing Directors. Continue reading