Mumbai: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS and Ind AS for the period ending September 30, 2017.
Financial Highlights for Quarter Ended September 30, 2017
Proposed record date 26/10/17; Payment date 01/11/17
Business Highlights for Quarter Ended September 30, 2017
Commenting on the Q2 performance, Rajesh Gopinathan, CEO and MD, said: “We experienced robust volume growth in Q2, driven by good demand across multiple industry verticals. Strong, broadbased client metrics this quarter demonstrates our increasing success with newer customers. Large deal wins this quarter, a good pipeline, and bottoming out of the Retail sector softness positions us well.”
Mr Gopinathan added: “We continue to gain share in the fast growing Digital spend of our customers, evident in our industry-leading Digital growth in Q2. By sharpening our focus on individual components of the Digital service stack, we have been able to bring to bear the full power of our contextual knowledge, research and innovation, and investments in location-independent agile, automation and cloud on our customers’ transformational imperatives and become a trusted partner in their Business 4.0 journeys.”
Q2 Segment Highlights
Industries: Strong revenue growth was visible across verticals in the September quarter. With the exception of Retail and CMI, all industry verticals grew above the company average, led by Travel & Hospitality (up 8% Q-o-Q), Energy & Utilities (up 7.2% Q-o-Q) and Life Sciences & Healthcare (up 3.6% Q-o-Q). On a year on year basis, all industry verticals – with the exception of BFSI and Retail – grew above 9.5%.
Markets: Growth was led by Europe (up 5.3% Q-o-Q), Latin America (up 5.7% Q-o-Q), APAC (up 3% Q-o-Q) and UK (up 2.5% Q-o-Q). North America grew by 1.4% Q-o-Q with continued softness in Banking and Retail.
Services: The reorganized service lines successfully completed their transition in Q2, and are experiencing strong demand in their respective domains. Key highlights:
Select Key Wins in Q2
Key Wins in Digital Services and Solutions in Q2:
Internet of Things
Enterprise Application Services
Cloud Application Services
Cyber Security Services
Research and Innovation:
TCS’ Research and Innovation teams continued to work on various research themes and finding innovative technological solutions to real world problems. Some key highlights:
As of September 30, 2017, the company has applied for 3517 patents, including 82 applied during the quarter. Till date the company has been granted 594 patents.
Total employee strength at the end of Q2 stood at 389,213 on a consolidated basis, with gross addition of 15,868 employees and net addition of 3,404 employees during the quarter. Overseas recruitment continues apace, with 3,725 employees recruited outside India, bringing the total to 6,979 in the first half of the fiscal year.
The company continues to enjoy best in class employee retention rates. The IT attrition rate (LTM) fell by 0.3% in Q2 to 11.3%, while the total attrition rate (including BPS) fell to 12.1%. The percentage of women in TCS continues to rise, hitting 35% in Q2. The total number of nationalities represented in the workforce stood at 133.
“Our progressive policies and investments in upgrading employee capabilities are driving our industry-leading retention rate. Employees see immense value in the learning opportunities afforded by our Digital Learning program, and view it as a critical avenue to realize their potential,” said Ajoy Mukherjee, Executive Vice President and Global Head, Human Resources.
Awards and Recognition:
IFRS Financial Statements
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the three-month periods ended September 30, 2016, June 30, 2017 and September 30, 2017
(In millions of `, except per share data)
Unaudited Condensed Consolidated Statements of Financial Position
As of March 31, 2017 and September 30, 2017
(In millions of `)
Ind AS Financial Statements
Consolidated Statement of Profit and Loss
For the Quarter ended September 30, 2016, June 30, 2017 and September 30, 2017
(In crores of `, except per share data)
Consolidated Balance Sheet
As at March 31, 2017 and September 30, 2017
(In crores of `)
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2014 The Global Indian New Network (TGINN)