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
Record date 24/10/18; Payment date 30/10/18
Business Highlights for Quarter Ended September 30, 2018
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 ie 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.”
Industries: Revenue growth accelerated in BFSI (+6.1% vs +4.1% in Q1) and Retail & CPG (+15.6% vs +12.8% in Q1) in Q2. Other verticals to show strong growth were: Energy & Utilities (+22.2%), and Life Sciences & Healthcare (+14.7%).
Markets: Growth was led by UK (+22.8%), Europe (+17.4%), and Asia Pacific (+12.5%). Revenue growth in North America accelerated further to 8.1%, versus 7% growth in Q1. India grew 7.4%.
Services: Business & Technology Services saw strong and broad-based revenue growth across service practices. Investments in new services and offerings, assets, thought leadership and innovation have started showing results in terms of deal wins and pipeline build-up, as well as through client and analyst endorsements and thought leadership publications.
As on September 30, 2018, the company has applied for 4185 patents, including 207 applied during the quarter and has been granted 782 patents
TCS added 10,227 employees on a net basis in Q2, the highest net addition in 12 quarters. Total employee strength at the end of Q2 stood at 411,102 on a consolidated basis. The percentage of women in the workforce rose further to 35.7%, while the total number of nationalities represented grew to 147.
The company’s investments in organic talent development resulted in a cumulative 12.4 million learning hours, that trained over 278K employees in digital technologies, and over 279K employees in Agile methods. TCS continued to have the best retention rate in the industry, with IT Services attrition rate (LTM) staying unchanged sequentially at 10.9%.
As part of the ‘Billion Steps Challenge’, one of the largest employee engagement initiatives undertaken as part of the company’s year-long golden jubilee celebrations, employees were challenged to walk or run individually or in groups within a 10-day window, so as to collectively log a billion steps in a special app. This unique employee challenge drew 200,000 participants globally who logged a record 3 billion steps.
“Our investments in organic talent development and innovative employee engagement initiatives continue to deliver best-in-class HR outcomes. This quarter, we introduced yet another innovation, democratizing the entry-level talent acquisition processes in India with the TCS National Qualifier Test. To all the talented youth out there, I want to say this: Regardless of where you are from, if you have the talent and the drive, we have a career for you,” said Ajoy Mukherjee, Executive Vice President and Global Head, Human Resources.
IFRS Financial Statements
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the three-month periods ended September 30, 2017, June 30, 2018 and September 30, 2018
(In millions of `, except per share data)
Unaudited Condensed Consolidated Statements of Financial Position
As of March 31, 2018 and September 30, 2018
(In millions of `)
Ind AS Financial Statements
Consolidated Statement of Profit and Loss
For the Quarter ended September 30, 2017, June 30, 2018 and September 30, 2018
(In crores of `, except per share data)
Consolidated Balance Sheet
As at March 31, 2018 and September 30, 2018
(In crores of `)
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