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TMCNet:  Tata Consultancy Services reports demand from major markets drives 3.1 % growth in $ terms

[July 13, 2017]

Tata Consultancy Services reports demand from major markets drives 3.1 % growth in $ terms

MUMBAI, India, July 13, 2017 /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 ended June 30, 2017.

Tata Consultancy Services.(PRNewsFoto/Tata Consultancy Services)

Financial Highlights for Quarter Ended June 30, 2017

  • Revenue at $4,591 million + 5.2 % Y-o-Y; + 3.1 % Q-o-Q
  • Net Income at $923 million (1.8%) Y-o-Y & (7.0%) Q-o-Q
  • Net cash from operations at 104% of Net Profit
  • Operating Margin at 23.4 %
  • Earnings Per Share at $ 0.47

Business Highlights for Quarter Ended June 30, 2017

  • Volume Growth at 3.5%
  • IT Attrition rate at 11.6% LTM
  • Total employees: 385,809; Gross addition: 11,202 employees
  • 8 clients added in $1M+ band; 12 clients added in $10M+ band
  • 1 new client in $50M+ & $100M+ bands

Commenting on the Q1 performance, CEO and MD, Rajesh Gopinathan said: "We have seen steady growth across industries in Q1. Robust volumes from major markets driven by good client additions across revenue bands and accelerating Digital adoption among customers have given us the right start to the year.  We have had excellent wins across all markets and have a good deal pipeline across industries that positions us well for growth in FY18."

Mr Gopinathan added: "As we go through the early stages of Business 4.0, enterprises are reimagining themselves as leaner, responsive data-centric organisations by embracing Agile, Cloud, Analytics and Automation. We have retooled our organization structures and go-to-market teams to remain relevant to customers and have introduced new service lines like Cognitive Business Operations and Digital Transformation services to capture these new opportunities."

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: "Holistic growth across all industry segments in Q1, a strong order pipeline, as well as the closure of large platform-based transformation opportunities gives us the confidence that overall growth momentum will increase in the coming quarters."

V. Ramakrishnan, Chief Financial Officer, said: "During the quarter high currency volatility including sharp rupee appreciation against the dollar resulted in Rs 650 crore loss in reported revenues. We remain disciplined in our financial management, stay focused on generating strong cash flows and invest in our digital business. Despite the impact of wage hikes in Q1, we continue to drive profitability to our targeted range."

Q1 Segment Highlights

Note to Editors: Changes in industry Data Reporting Format
Over 82% of TCS' revenues come from major markets like Americas, UK, Europe and Australia, where our business has a fair share of annuity-based revenues and therefore less volatile. Our revenues from rest of the world or businesses tend to be more volatile on account of their project-centric nature. To provide investors and analysts with a clearer picture of our core performance in industry verticals, the volatile markets have been clubbed into a single group called 'Regional Markets and Others' in our quarterly investor factsheet. This segmentation is to assist in a more accurate discussion of our business performance. The official definition of our business segments in our financial statements remains unchanged and is available as part of the Statement of Accounts.

Industries:  Strong revenue growth was visible across verticals in the June quarter. All industry verticals except Retail and BFSI exhibited strong growth at over 3.5% sequentially.

Markets: All major markets grew in CC terms with Europe leading the way (5.9% Q-o-Q), followed by North America and UK. Among growth markets, Latin America led the pack at (2.8% Q-o-Q) followed by India, APAC & MEA.

Services: During Q1, TCS reorganized its service lines, adding new lines like Cognitive Business Operations and Digital Transformation Services. All the new service lines are seeing good market traction, have a robust pipeline and witnessing secular growth.

  • Cognitive Business Operations saw over 5% Q-o-Q growth, led by transformation offerings for the back-office, cloud adoption, regulatory compliance and TCS Platform based services
  • IoT-based services saw high client traction with 20+ initial engagements in the areas of Connected Home, Mobility, Energy Management and Remote Monitoring
  • Cybersecurity services saw double digit Q-o-Q growth with strong demand in compliance requirements, privileged access management & cybersecurity
  • Digital Interactive services saw multi-million dollar wins with two insurance clients and an energy client

India's Goods & Services Tax (GST)

A key event in the India market was the launch of GST on July 1, 2017. TCS played a pivotal role in the country's largest tax reform initiative on multiple fronts:

  • Central Board of Excise and Customs (CBEC): TCS provided the Systems Integration and Infrastructure Management Services for GST process and launch
  • State Governments: We have delivered solution adapters for integrating with GSTN and important Tax analytics for efficient financial management
  • Large Corporates: Our corporate customers in India are using TCS GSP (GST Suvidha Provider) solution that provides a comprehensive capabilities for Tax Determination, Filing of Tax Returns and Tax Analytics
  • SMEs: In addition to our GST ready ERP for SMEs on the iON Platform, TCS has rolled out a GST Shiksha Hub that drives awareness and knowledge on GST

Select Key Wins in Q1

  • Selected as a strategic partner by large global Audit and Advisory firm to transform and manage their enterprise IT across five business groups using Agile and DevOps methodology
  • Chosen by a large UK life insurance company to transform its customer service and policy administration by leveraging TCS BaNCS Insurance platform
  • Engaged by a European global paints company to transform their applications landscape to drive optimization through automation and continuous improvement
  • Selected by a leading natural gas and utility company in North America to transform into a digital utility with focus on speed to market and enhancing customer experience
  • Engaged to simplify the non-core business applications, transform customer experience through digital technologies and use analytics to predict customer behavior for a North American mortgage institution
  • Chosen by a large life insurance firm in Asia Pacific to transform its core systems for policy administration, claims and reinsurance business functions using TCS BaNCS insurance platform and delivered in a 'Software as a Service' model
  • Selected as strategic partner by North America-based global biopharma company to provide IT, networks and security services
  • Chosen by a global leader in innovative workforce solutions as their strategic partner to provide technology managed services for their global IT and infrastructure
  • Engaged by a North American metals major to completely transform its IT environment to cloud and hosted services model
  • Selected by an European based producer of environment-friendly fertilizers to transform their end-user computing architecture and service delivery model and support their digitalization agenda
  • Chosen as a strategic partner to Implement TCS BaNCS as a multi-asset class clearing and settlement solution for a Market Infrastructure provider in North America

Key Wins in Digital Services and Solutions in Q1:

  • Chosen by a European global engineering company to develop an IoT platform for predictive maintenance and monitoring of remote machinery across geographies
  • Selected by a North American retail firm to ensure customer centric shopping experience on its channels using Enterprise Cloud technologies
  • Engaged by a global finance services organization to consult on cloud strategy and roadmap
  • Selected by a North American consumer products conglomerate to drive their data center transformation program using TCS proprietary IoT solutions
  • Selected by a European food and health retail major to empower customers by using real-time spend analytics solution using Big Data technologies
  • Engaged by a European financial services corporation to consult and create a blue print for a futuristic analytics platform using TCS proprietary Big Data methodology
  • Chosen as a strategic partner by a North American manufacturing firm to build an Industry 4.0 IoT platform to help predict and deliver personalized offerings for their end customers
  • Engaged by a European multinational clothing retail company as a strategic partner for their digital marketing program
  • Selected by a UK based global insurance company to transform customer on-boarding using digital interactive services

Innovation and Intellectual Property:
As of June 30, 2017, the company has applied for 3402 patents, including 43 applied during the quarter. Till date the company has been granted 541 patents.

Human Resources:
The total employee strength at the end of Q1 was 385,809 on consolidated basis with gross addition of 11,202 and net addition of (1,414 employees) during the quarter. The total attrition rate (LTM) was at 12.4% including BPS, with IT attrition at only 11.6%. The percentage of women in TCS rose to an all-time high of 34.8% while the number of nationalities increased to 134.  

"We continue to hire talent across markets and help TCSers gain new digital skills so they can participate successfully in the Digital economy. Over 215,000 TCSers have been trained as 'Digital Champions' and the accumulated contextual knowledge of the customer's business together with our unparalleled execution capabilities positions us well in today's competitive context," said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.

Awards and Recognition:

Business Leadership:

  • Ranked as Leader in 22 technology analyst surveys during the past quarter
  • Ranked as a Top Employer of US Talent in the IT Services Sector by The Cambridge Group
  • Named as One of America's Civic 50
  • Named as Achievers 50 Most Engaged Workplaces in the US and Canada
  • Retained #1 position in Europe for customer satisfaction for fourth consecutive year
  • Bagged multiple awards at the Asian Banker Technology Innovation Awards 2017
  • Editor's choice Award for Best Learning Execution in 2017 LearningElite Awards
  • Retained Maturity Level 5 in the CMMI®-SVC Enterprise-wide Appraisal
  • Multiple awards at the Annual ATD Conference 2017


  • Best Supplier Award from Ericsson
  • Oracle Integrated Cloud Partner of the Year Award in UK & Ireland
  • Adobe System Integrator Partner of the Year Award for India
  • Pega 2017 Partner Excellence Award


  • Won the prestigious 'ISC-FICCI Sanitation Award 2017 - Best Corporate Initiative in Sanitation' 


Unaudited Condensed Consolidated Statements of Comprehensive Income

For the three-month periods ended June 30, 2016, March 31, 2017 and June 30, 2017

(In millions of USD, except per share data)

period ended
30, 2016

period ended
March 31, 2017

period ended June
30, 2017





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Unaudited Condensed Consolidated Statements of Financial Position

As of March 31, 2017 and June 30, 2017

(In millions of USD)

As of March 31, 2017

As of June 30, 2017


 Property and equipment



 Intangible assets and Goodwill



 Accounts Receivable



 Unbilled Revenues






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 Other current assets



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Liabilities and Shareholders' Equity

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 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 385,000 of the world's best-trained consultants in 46 countries. The company generated consolidated revenues of US $ 17.6 billion for year ended March 31, 2017 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. For more information, visit us at

Follow TCS on Twitter at @TCS_News.


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