Business Services, Internet, Investments, New Media, Outsourcing, Software, Technology

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.”

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 411,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $19.09 billion in the fiscal year ended March 31, 2018, 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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