Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS US Dollarsfor the quarter ended June 30, 2013.
Financial Highlights for Quarter Ended June 30, 2013
• Operating Profit at $ 856 million up 14.0% Y-o-Y
• Dividend per share of ` 4
Business Highlightsfor Quarter Ended June 30, 2013
• Gross Addition of 10,611 Employees
• High Utilisation rates at 82.7% (excluding trainees)
• Two new $100million clients added
Commenting on the Q1 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter.”
Mr Chandrasekaran added: “Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth.”
Rajesh Gopinathan, Chief Financial Officer, said: “The current environment demands an agile operating model that can capture diverse growth opportunities. We continue to execute to plan and invest for growth, while maintaining stability in our margin profile.”
Growth in Q1 was holistic. Growth was seen across all industry segments led by Life Sciences, Retail, Telecom and
BFSI. There was balanced growth across IT and other service lines led by Assurance, EiS, Global Consulting and Asset Leveraged Solutions. Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific.
During the quarter, TCS closed the acquisition of Alti , one of the top 5 system integrators of SAP solutions in France with several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers.
Select Key Wins
• Engaged by Department of Post as their central transformation system integrator. TCS is providing common infrastructure for eight large modernisation programs, transforming the core mail operations for DoP as well as back office operations like HR and F&A, making services easily accessible through internet and mobile devices for citizens and postal workers
• Engaged by a leading Nordic airlines in an end-to-end IT outsourcing contract to deliver IT infrastructure services, application development and management and drive innovation to help the airline in its transformational journey
• Selected by a global aerospace major as a strategic partner in the IT application services space
• Won a transformation deal in assurance services to drive efficiency and innovation in testing for a large health services organization in North America
• Chosen as a strategic partner by leading North American communications provider to provide holistic assurance solutions across their entire IT estate in a managed services mode
• A large Asia-Pacific conglomerate has awarded TCS a back-office transformation deal.
• Selected as a strategic partner and awarded a contract for application development and infrastructure support by a leading North American supplier of maintenance, repair and operating products.
• A North American based global financial services company has awarded TCS an engagement covering application development, maintenance and assurance of their core banking and enterprise systems.
• A North American based global financial services company has awarded TCS a large managed services engagement for its cards platform
Key Wins in Digital Services and Solutions
• An Asia Pacific bank has selected TCS Hy5 Presidio™ Mobile Device Management product for deployment on Android devices
• A global pharmaceutical company has selected TCS Hy5 Canvas™ Mobile Application Development Platform for development of its enterprise mobile applications
• A North American financial services company has selected TCS Hy5 Test™ Mobile Application Testing platform as the sole tool to test their mobile applications
• An Asia Pacific based financial services company has selected TCS iAgent™ mobile insurance agent solution for its agents
• Won an engagement to develop and integrate HR applications on tablet devices from a global pharmaceuticalmajor
• Won an engagement to develop a tablet based system to optmize sales force activities from a North American medical device manufacturer
• Won an engagement to develop a mobile application for providing users with detailed information and search capability on Indian Law for a major provider of Information Services
• Won an engagement for a multi-year data warehouse transformation project using Big Data tools from a major financial services company
• Won an engagement from a major North American bank to implement a customer relationship discovery platform that enables financial advisors to manage and cross-sell and up-sell opportunities
• Won an engagement to develop a device log analytics platform using Big Data from a major computer equipment manufacturer
• Won engagements from a major North American bank, a global Consumer Packaged Goods company and a North American insurer to define their Big Data technology strategy and roadmap
• Won an engagement to transform their legacy batch processing systems using Big Data technologies for a major North American retailer
• Won an engagement to implement security for the Big Data platform for an Asia Pacific bank
Key Wins in Products/Platforms:
• A European Insurance firm selected TCS BaNCS for their integrated insurance platform
• An Asia-Pacific bank selected TCS BaNCS Corporate Actions solution
• A Latin American bank selected TCS BaNCS Corporate Actions solution
• An African financial institution selected TCS Market Infrastructure platform for additional asset classes
• TCS Analytics Platform was selected by an European airline
• TCS Sourcing platform was selected by an Asian consumer company
Innovation and Intellectual Property:
As of June 30, 2013, the company has applied for 1340 patents including 60 applied during the quarter. Till date, the company has been granted 90 patents.
Human Resources: Gross Additions 10,611 & Net Additions 1,390
The company continued to hire to support business growth. There was a total gross addition of 10,611 people (net addition of 1,390) taking the total employee strength of 277,586 on a consolidated basis. The utilization rate (excluding trainees) was at 82.7% and that including trainees was 72.5%. The attrition rate (LTM) dropped further sequentially to 10.52 per cent including BPO. The attrition rate in IT was at 9.55 per cent, while BPO attrition was higher at 15.77 per cent.
“We have been able to push our utilization rates further. The on-boarding of current year’s engineering graduate trainees will start from this quarter onwards,” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.
Awards and Recognition: Business Leadership:
• Most Admired Company - Fortune India
• Business Leader in Information Technology -NDTV Profit Leadership Awards
• Top 10 Companies with the Best Business Outlook –Glassdoor
• Innovative Enterprise Solution - CA World
• IT Outsourcing Company of the Year – Belgium
• 2013 SAP® Pinnacle Award
• System Integrator Partner of the year –Netapp
• Microsoft Supplier of the Year – 2013
• Innovation and Best HR Practicesin Human Capital – TCS Uruguay
• Best Volunteering Company – TCS Equador
• Business Leader in Corporate Social Responsibility -NDTV Profit Leadership Awards
• Company with Best Social Service Practices – TCS Equador
• N Chandrasekaran, CEO was named:
o “Business Visionary” at NDTV Profit Leadership Awards 2012
o One of STEMconnector’s '100 CEO Leaders in STEM'
o “Management Man of the Year 2013” Award -Bombay Management Association
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