MUMBAI, India, July 14, 2016 /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 in dollar terms for the quarter ending June 30, 2016.
Business Highlights for Quarter Ended June 30, 2016
Total employees: 362, 079; Gross addition: 17,792 employees
Six clients added in $20M+ band; Four clients added in $50M+ bands
Commenting on the Q1 performance, CEO and MD, N Chandrasekaran said: "Strong execution and accelerating customer adoption of Cloud, Big Data & Analytics has driven broad-based growth across key markets and industries. Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge."
Mr Chandrasekaran added: "Our rising employee retention rates for three consecutive quarters reflects our focus on engagement and investments we have made to build a strong digital talent base. This is paying off with over 165,000 TCSers now trained with significant expertise in new Digital technologies that are rooted in specific domains."
Rajesh Gopinathan, Chief Financial Officer, said: "This has been a quarter of good financial performance balancing revenue growth, profitability and cash generation. Our disciplined approach to operations have helped us counter strong headwinds in the form of annual salary hikes and promotions as well as global currency and market volatility through the quarter. We continue to invest in people, platforms and products as we look to strengthen our competitive position across key markets."
During Q1, TCS posted the incremental revenues of $155 million – the highest in last seven quarters upto Q1 - driven by strong growth across core markets in North America, UK and Europe. India was the highlight among growth markets.
Adoption of Cloud, Big Data & Analytics is driving demand in Manufacturing, Energy & Utilities and Communications, while front-office transformations are helping growth in the Telecom and Media sectors. Consumer businesses like Retail, TTH and Life Sciences are also increasingly using analytics to create rich experiences for each customer and reimagine each unique customer's journey.
Select Key Wins in Q1
Selected as a strategic partner by a leading process manufacturing company in North America to bring agility to its IT environment leveraging ignioTM, TCS' neural automation platform
Partnering with a leading European semiconductor equipment manufacturer to enhance supplier experience as well as optimize development and support services
Chosen by a leading UK-based bank to increase organisational responsiveness to risk, time-to-compliance and significantly improve employee experience by transforming key functions
Chosen by global medical standards body to help reimagine learning and collaboration for doctors worldwide by deploying TCS iON Digital Learning Platform through the medical career cycle
Chosen by a leading Asian airline to bring agility and hyper-connectivity by operating on the Cloud
Selected by a leading North American Luxury Retailer as the strategic partner to deliver rich customer experience across channels as well as drive automation and predictability using ignio™
Partnering with a North American multi-brand retailer to rapidly expand its global footprint and drive synergies by simplifying the client's IT landscape and create a platform to enable future business growth
Chosen by a leading North American biopharmaceutical firm as a partner to help improve throughput of their new molecule pipeline and improve regulatory compliance
TCS BaNCS™ clearing platform chosen by a leading Latin American financial institution to launch clearing and settlement services in one of the biggest markets in the region
Key Wins in Digital Services and Solutions in Q1:
Chosen by a leading global financial services firm to provide its customers with superior on-boarding experience across its various products
Engaged by a leading Asian Insurance company for real-time analytics on enterprise performance data using TCS dreamUP™
Engaged by a major North American telecommunications provider to re-architect their IoT platform using API and Big Data technologies
Chosen by a North American healthcare provider to enhance agility through DevOps methodology using Cloud technologies
Chosen as a strategic partner by a leading maker of energy equipment to significantly optimise chiller systems using an IoT platform and TCS Sensor Data Analytics framework
Engaged by a North American biopharmaceutical company to provide real time performance analytics using Big Data technologies
Chosen by a UK based supermarket chain to create the Cloud-based roadmap, operating model and architecture using DevOps
Chosen by a North American Healthcare Service provider for a consulting engagement to provide cloud readiness assessment using TCS proprietary methodology and migrate their consumer data onto Cloud
Selected by a Latin American private bank to provide its customers with superior unified experience across multiple channels
Innovation and Intellectual Property: As of June 30, 2016, the company has applied for 2,928 patents, including 67 applied during the quarter. To date the company has been granted 385 patents.
Human Resources: The total employee strength at the end of Q1 was 362,079 on consolidated basis with gross addition of 17,792 (net addition: 8,236 employees). The total attrition rate (LTM) fell to 13.6% including BPS. The percentage of women in TCS rose to an all-time high of 33.8% while the number of nationalities increased to 131.
"We are delighted that for the third quarter in a row, our attrition rates have fallen underscoring our ability to engage with employees and provide long-term careers. We remain focused on building a team of global professionals with diversity and multiple skill-sets and helping TCSers secure additional skills in new technologies. The process of on-boarding this year's campus trainees has also begun," said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.
Awards and Recognition:
North American Employee Engagement Awards 2016: Employee Engagement Project of the Year; Social Responsibility Project of the Year
Etihad Airlines: Best Services by IT Supplier
Lumity 2016 Leadership Award: For sustained commitment to engaging skills-based volunteers to inspire students in STEM education, technology resources and social investments
'50 Most Engaged Workplaces in North America: Achievers Award 4th consecutive Year for benchmarked employee engagement, global internal social networking hub and extensive CSR initiative
Three Most Admired Knowledge Enterprise (MAKE) Awards
BM Munjal Awards 2016: Business Excellence through Learning & Development
ATD Excellence in Practice Award: Categories: Managing the Learning Function; Organizational Learning and Development
Data News Award for Excellence (Belgium): Outsourcing Services Award for Excellence
NXP: Best Supplier award
EMC: EMEA Alliances Growth Partner of the Year
Run SAP®: Partner of the Year - Pinnacle Award
Juniper: Emerging Alliance Partner of the Year 2016
Unaudited Condensed Consolidated Statements of Comprehensive Income For the three-month periods ended June 30, 2015, March 31, 2016 and June 30, 2016 (In millions of USD, except per share data)
Three-month period ended June 30, 2015
Three-month period ended March 31, 2016
Three-month period ended June 30, 2016
Cost of revenue
SG & A expenses
Other income (expense), net
Income before income taxes
Income after income taxes
Earnings per share in USD
Unaudited Condensed Consolidated Statements of Financial Position As of March 31, 2016 and June 30, 2016 (In millions of USD)
As of March 31, 2016
As of June 30, 2016
Property and equipment
Intangible assets and Goodwill
Cash and Cash equivalents
Other current assets
Other non current assets
Liabilities and Shareholders' Equity
Long term borrowings
Short term borrowings
Other current liabilities
Other non-current liabilities
About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services is an IT services, consulting 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 IT, BPS,infrastructure, engineering 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 362,000 of the world's best-trained consultants in 46 countries. The company generated consolidated revenues of US $16.5 billion for year ended March 31, 2016 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. For more information, visit us at www.tcs.com