Volumes, Digital drive broad-based growth in Q2

Revenue at $4.16 billion up 3% Q-o-Q; up 5.8% Y-o-Y

- Net Income at $926 million up 3.2% Q-o-Q; up 6.2% Y-o-Y

- Revenue growth in Constant Currency: 3.9% Q-o-Q

- Robust Volume growth of 4.9%

Oct 13, 2015, 09:07 ET from Tata Consultancy Services

MUMBAI, India, Oct. 13, 2015 /PRNewswire/ -- 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 September 30, 2015.

Financial Highlights for Quarter Ended September 30, 2015

  • Operating Profit at $1,125 million; Growth of 6.0% Q-o-Q and 6.7% Y-o-Y
  • Earnings Per Share at $ 0.47

Business Highlights for Quarter Ended September 30, 2015

  • Gross employee addition: 25,186
  • Total headcount: 335,620
  • Utilization: 86% (excluding trainees) & 82.3% (including trainees)
  • $100M+ Customers up by 3; $10M+ customers up by 6

Commenting on the Q2 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "We have delivered accelerated growth in constant currency terms for Q2. Driven by great execution on the ground, our broad-based performance has been led by strong sequential growth in BFS, Retail and Life Sciences verticals with UK and North America leading the markets."

Mr. Chandrasekaran added: "We remain focused on partnering with clients in multiple business dimensions to help them strategize and execute their Digital roadmaps. Given the growing market adoption of Digital, we continue to take new IP-led products and platforms to market successfully as well as invest in training our talent. Over 30,000 TCSers have already successfully trained in new technologies this year using our experiential Digital Learning Platform."

Rajesh Gopinathan, Chief Financial Officer, said: "In a dynamic external environment, we continue to manage our operations with discipline and agility to ensure that we can support business growth. Our focus on profitability has increased our margins sequentially and generated strong cash flows while investing for future growth."

Growth was broad-based in Q2 with all industries growing on a sequential basis led by BFS, Retail, Life Sciences and Travel & Hospitality. Core markets like UK, North America and Europe grew smartly along with emerging markets like Latin America, India and MEA. There was balanced growth across service lines led by Asset Leveraged Solutions.

Select Key Wins

  • Selected as Strategic Partner by a large mutual life-insurance company to manage IT Application Portfolio for driving efficiency, simplification and automation leveraging TCS Integrated Service Delivery Model and GNDM
  • Expanded relationship with a leading retailer in North America through a multi-year managed services deal covering enterprise wide Application Management, Infrastructure Support and Assurance services
  • Selected by a large universal bank in UK as a strategic partner for providing services across Application Development, Production Support and Service Delivery for a major transformation program
  • Selected by leading integrated Utility in North America as their strategic partner to manage and transform their IT Infrastructure operations
  • Chosen by North American Telco service provider as strategic partner to transform its Quality Assurance and Testing organization
  • Selected by global Life Sciences Diagnostics company for next phase of its SAP transformation program
  • Selected as strategic partner by European Industrial Manufacturing company for Infrastructure services
  • Selected as a strategic partner by a leading global manufacturer of protective and specialty packaging to manage and transform its Finance, HR and Procurement functions
  • Selected by a leading technology company to provide end to end lab management services for all of their global product labs
  • Selected by a leading Aircraft manufacturer for implementing a Data Lake for consolidation of all financial data across disparate IT systems & P&Ls for analytics and business insights
  • Selected by a leading Aircraft manufacturer to develop IOT applications in the area of Contractual Services agreements
  • TCS' TAP, the Accounts Payable Platform, was selected by a leading global media research firm to transform their Finance and Accounting Function to become leaner and more agile by improving efficiency of their Invoice to Payment Cycle
  • Selected by a leading APAC publisher to complete transformation of its finance operations using TCS' TAP platform

Key Wins in Digital Services and Solutions

  • Chosen by a global bank to create its strategy and technology roadmap for its advanced analytic needs using big data technologies
  • Selected by an APAC bank to provide consulting services to develop architecture and roadmap for a Hadoop based Data Lake
  • Selected by an European retail conglomerate to implement its product information management program using big data technologies
  • Selected by a European utilities company for analytics and insights
  • Engaged by a leading Middle East bank for a consulting engagement to develop social media roadmap for its customer experience program
  • Chosen by a leading North American bank to implement a social collaboration platform
  • Engaged by a UK utilities company to provide consulting services to develop cloud based enterprise data integration platform
  • Selected by a leading UK based insurance company as a strategic partner for digital transformation
  • Chosen by a European bank as a strategic partner to develop a digital banking platform for its next generation customer experience program
  • Chosen by a European bank to envisage and enhance its customer facing online channel


Ignio is TCS' neural automation platform that helps enterprises reimagine their technology and business operations. With its unique value proposition, Ignio is receiving very good traction across the customer base:

  • A financial institution in UK is leveraging Ignio to model and predict the impact of business or technology changes and for proactive planning
  • A leading market research firm in North America chose Ignio to deliver intelligent automation across the enterprise technology operations in order to improve agility, efficiency and transform their Infrastructure operations
  • A financial institution in North America is deploying Ignio for performing health checks and diagnostics of their business-critical and customer-facing web applications
  • A manufacturing firm in North America has successfully piloted Ignio for performing compliance checks on its IT infrastructure and platforms


  • Selected by a leading APAC bank for implementing a Payment Hub across 13 countries in Asia
  • Selected by a leading MEA bank for harmonized Payments Operations
  • Selected by a leading UK mutual financial institution for transforming their core banking operations
  • Selected by two leading APAC financial institutions for transforming their core banking operations
  • Selected by leading MEA mutual financial institution to extend Insurance and Wealth platform for enterprise-wide usage across the emerging markets

Digital Learning Platform
TCS has built and deployed a new Learning Platform to enable Digital training for 100,000 employees in this financial year. Thirty thousand employees have already undertaken courses on the platform where immersive content has been created covering the entire gamut of Digital offerings. The new Digital Learning platform and allied infrastructure enables 'anytime-anywhere' learning in a cloud environment.

Innovation and Intellectual Property:

  • As of September 30, 2015, the company has applied for 2432 patents, including 59 applied during the quarter. Till date the company has been granted 277 patents.

Human Resources:
The company continued to hire to support business growth. There was a total gross addition of 25,186 people (net addition of 10,685 employees) taking the total employee strength of 335,620 employees on a consolidated basis. The utilization rate (excluding trainees) was at 86% and that including trainees was 82.3%. The attrition rate (LTM) was at 16.2% per cent including BPS.

"On a quarterly basis, our retention levels have improved this quarter with a net addition of over 10,000 employees in Q2. Our hiring continues to be strong with all time-high of over 25,000 employees joining us this quarter," said Ajoy Mukherjee, Executive VP and Global Head, Human Resources.

Awards and Recognition:
Business Leadership:

  • Ranked on the Forbes list of World's Most Innovative Companies
  • Ranked No. 1 in Dataquest's Top 20 list of Indian IT companies – 2015
  • Winner 'Make In India Awards for Excellence' 2015
  • Recognized for the 'Best In House IP Team of the year - IT & Technology' at Global IPR 2015 Conclave
  • Winner 3 Gold awards at the TATA Institute of Social Sciences (TISS) -Leapvault CLO Awards India :
    • Global L&D Team of the year
    • Best Risk/Safety/Policy Compliance Training Program
    • Best Virtual Learning Program
  • Ranked Number One on the 2015 IDC Financial Insights FinTech Rankings Top 100
  • Winner 'Best Practice in Developing Future Leaders' Award at the Best Leadership Development Practices of Asia Awards
  • TCS Uruguay winner of Crear Award 2015 Anniversary Special Edition for "Innovation and Best Practices in Human Capital"


  • Won 'Fastest Growing SI Partner of the Year' award at Expericon 2015
  • Won the Business Transformation Award from the Pegasystems Partner Excellence Awards

N Chandrasekaran:

  • Ranked 'Best CEO' in the Technology/IT Services & Software sector in Institutional Investor's 2015 All-Asia Executive Team rankings

Unaudited Condensed Consolidated Statements of Comprehensive Income

For the three-month periods ended September 30, 2014, June 30, 2015 and September 30, 2015

(In millions of USD, except per share data)

Three-month period ended September 30, 2014

Three-month period ended June 30, 2015

Three-month period ended September 30, 2015





 Cost of revenue




 Gross margin




 SG & A expenses




 Operating income




 Other income (expense), net




 Income before income taxes




 Income taxes




 Income after income taxes




 Minority interest




 Net income




 Earnings per share in USD





Unaudited Condensed Consolidated Statements of Financial Position

As of March 31, 2015 and September 30, 2015

(In millions of USD)

As of March 31, 2015

As of September 30, 2015


 Property and equipment



 Intangible assets and Goodwill



 Accounts Receivable



 Unbilled Revenues






 Cash and Cash equivalents



 Other current assets



 Other non current assets



 Total Assets



Liabilities and Shareholders' Equity

 Shareholders' Funds



 Long term borrowings



 Short term borrowings



 Other current liabilities



 Other non-current liabilities



 Minority Interest



 Total Liabilities



About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT servicesconsulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of ITBPS, infrastructureengineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata group, India's largest industrial conglomerate, TCS has over 335,000 of the world's best-trained consultants in 46 countries. The company generated consolidated revenues of US $15.5 billion for year ended March 31, 2015 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.

Follow TCS on Twitter.
Subscribe to an RSS Feed of TCS Press Releases.

Logo - http://photos.prnewswire.com/prnh/20131002/LA90934LOGO-b


SOURCE Tata Consultancy Services