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 December 31, 2012.
Highlights for Quarter Ended December 31, 2012
Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “We have had an excellent quarter of well rounded performance and have driven a higher quality of revenue and increased profitability through focus on productivity and innovation. We had good revenue growth, balanced across service-lines, industries and geographies; our agile, customer-centric organization is delivering an increasing number of larger and deeper client relationships.” He added: “We believe that clients are going to invest in making their operations ‘digital-ready’ in 2013 and drive business growth. TCS is well positioned to help our clients in this journey.”
S. Mahalingam, Chief Financial Officer and Executive Director, said: “The overall performance has been in line with what we had outlined at the beginning of the year. Our superior execution in this seasonally weak quarter has delivered productivity gains and an expanded operating margin.” He added: “Our business model of delivering growth with the desired profitability requires us to invest in the front-end and in new capabilities and we will continue to make those investments.”
Growth in Q3 was broad-based. Among mature markets, USA and UK led the growth story. Amongst growth markets, Latin America showed double digit growth sequentially, followed by India. Amongst industries, growth was led by Banking, Financial Services and Insurance (BFSI), Energy & Utilities, Manufacturing & Retail & Distribution. In terms of services, TCS’ full services capabilities continue to be leveraged by customers with newer service lines like Enterprise Solutions, Infrastructure Services and Global Consulting driving growth. Asset Leveraged Solutions and Engineering and Industrial Services also showed higher growth.
Innovation and Intellectual Property:
As of December 31, 2012, the company has applied for 1088 patents including 71 applied for during the quarter. Till date, the company has been granted 76 patents.
At the end of Q3, the total employee strength of the company was 263,637 with a gross addition of 17,145 employees which included 9,831 trainees & 5,072 laterals in India as well as 2,242 employees in international locations. The net addition was 9,561 employees. Attrition rate in IT Services fell further to 9.8% (LTM). Overall attrition, including BPO (22.3% LTM), was 11.2% (LTM).
Non-Indian nationals, representing 112 nationalities, formed 7.6% of the total employee base. Women made up 32% of the workforce. Utilization in Q3 was at 81.7 % (excluding trainees) & 72.1 % (including trainees).
“We have hired almost 50,000 professionals in the first three quarters of this financial year to support business growth and we continue to forecast a healthy growth in the workforce numbers going forward,” said Ajoy Mukherjee, Executive Vice President and Head, Global Human Resources.
Awards and Recognition
TCS was ranked as the most valuable company of 2012 in the Business Today 500. It was also rated among the greenest companies worldwide by the Newsweek magazine. The company was also rated as top ICT Employer of the year in the Netherlands. TCS China was selected among ‘100 Best Human Resource Management (HRM) Companies’ during 2012. TCS was also awarded the best employer in IT industry in ‘Recognition of Grooming of Human Capital in Chile’ for the year 2012 by DuocUC.
TCS’ High Performance Computing (HPC)-driven technology won the 2012 HPC Innovation Excellence Award. The company won the ‘Innovation Partner for Enterprise Solutions’ award at EMC Momentum 2012. It was also awarded the Thomson Reuters India Innovation Awards 2012 in the Hi-Tech Corporate category. TCS won IT Services Marketing Association (ITSMA) Diamond Award. The Computer Society of India (CSI) adjudged Ministry of External Affairs’ Passport Seva Project (PSP) as the most significant e-Governance initiative of the Government of India undertaken during 2011-12. MPOnline won the “Manthan Award” for eGovernance project. TCS received QuEST Forum India Quality Award 2012 for the Top Software Company.
CEO N Chandrasekaran was awarded the “Outstanding Business leader of the year” by CNBC Asia’s India Business Leader (IBLA) of the year and the “Asia Business Leader Award of the year” (ABLA) awards 2012. He was also presented with the ‘Pathfinder CEO’ award by National HRD Network (NHRDN). CFO S Mahalingam won the marquee 'CFO of the Year' award and TCS’ Finance team was recognised as the 'Finance Team of the Year' at the CFO Innovation Asia Awards in Singapore.
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