Tata Consultancy Services issued its consolidated financial results according to IFRS US Dollars for the quarter ended December 31, 2015.
Business Highlights for Quarter Ended December 31, 2015
· Gross employee addition 22,118
· Total headcount: 344,691
· Utilization: 84.9% (excluding trainees) & 80.9% (including trainees)
· No of $100m+ clients increases by 1 to 34; No of $20M+ clients increase by 2 to 173
Unaudited Condensed Consolidated Statements of Comprehensive Income For the three-month periods ended December 31, 2014, September 30, 2015 and December 31, 2015 (In millions of USD, except per share data)
12/31/14 9/30/15 12/31/15
Revenue 3,931 4,156 4,145
Cost of revenue 2,168 2,318 2,305
Gross margin 1,763 1,838 1,840
SG & A expenses 700 713 738
Operating income 1,063 1,125 1,102
Other income (expense), net 101 103 106
Income before income taxes 1,164 1,228 1,208
Income taxes 280 296 280
Income after income taxes 884 932 928
Minority interest 11 6 2
Net income 873 926 926
Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “All our industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods. Our international business has grown smartly in CC terms with North America and Europe leading the way among major markets and Latin America among growth markets.” Mr Chandrasekaran added: “Digital will remain the core focus for enterprise IT in 2016 as our customers respond to competition in a global economy driven by real-time insights. With 13.7% of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers. Rajesh Gopinathan, Chief Financial Officer, said: “In a challenging quarter with significant cross currency and other headwinds, we have operated with rigor and discipline to deliver credible margin performance and generated excellent cash flows”.
Growth in Q3 was holistic with all industry segments showing sequential growth with Life Sciences & Healthcare, Manufacturing and Hi-Tech leading the way. Europe and North America led growth in major markets while Latin America and Asia Pacific led the growth markets. Among service lines, Infrastructure Services and BPS were the leaders.
