Tata Consultancy Services reported its consolidated financial results according to IFRS in dollar terms for the quarter ended September 30, 2016.
Business Highlights for Quarter Ended September 30, 2016
- Total employees: 371,519; Gross addition: 22,665 employees
- Clients in $50M+ revenue band by 1 and in $20M+ revenue band by 6
Commenting on the Q2 performance, N Chandrasekaran, CEO and MD, TCS, said, “It has been an ‘unusual Q2’ for TCS. Growing uncertainties in the environment is creating caution among customers and resulted in holdbacks in discretionary spending this quarter. In additional, volatility in markets like India and Latin America also muted revenue growth. It has been a good quarter from a profitability perspective where despite multiple headwinds our disciplined approach and focus on operations has helped us deliver a strong margin performance.”
Chandrasekaran added, “With technology increasingly at the forefront of business, we are confident that this is temporary. We continue our strong tradition of investing in building IP and solutions as well as talent for the future. Over 180,000 TCSers are now trained with significant expertise in new Digital technologies.”
Rajesh Gopinathan, Chief Financial Officer, TCS, said, “This has been a quarter of good financial performance with sequential improvement in profitability and strong cash generation despite multiple headwinds including global currency and market volatility through the quarter.”
During Q2, growth was led by Life Sciences and Healthcare which grew at 4.7% sequentially in constant currency followed by Energy & Utilities (up 3.6%), Manufacturing (up 3.1%), Travel & Hospitality (up 2.3%) and Communication and Media which grew 2%.
From a geography perspective, Europe saw strong growth at 3.7% and Asia Pacific at 3.5% sequentially in constant currency while North America grew 1.4% sequentially and UK was flat. India declined by 7.6% sequentially and Latin America also continued to show volatility.
