CIMdata PLM Industry Summary Online Archive
19 October 2012
Financial News
Tata Consultancy Services: Growth from all Markets and Industries Highlights Q2 Performance
Tata Consultancy Services reported its consolidated financial results according to IFRS for the quarter ended September 30, 2012.
Highlights for Quarter Ended September 30, 2012
- Operating Income at $ 763 million; Growth of 11.5 % Y-o-Y and 1.7 % Q-o-Q
- Operating Margin at 26.8%
- Dividend per share of ` 3
- Earnings Per Share at $ 0.33
- Gross Addition of 18,654 Employees (Net addition: 10,531)
- Lowest Attrition Rate in last 10 quarters: 11.4% (IT + BPO)
- Utilisation rates at 81.6% (excluding trainees)
- 41 New Clients added
Commenting on the Q2 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “We have delivered a strong performance with well-rounded growth across industries and geographies. Our execution excellence is winning recognition and our service offerings remain relevant for customers. He added: “As the global operating environment continues to evolve, there is little doubt that technology is playing a more pivotal role to shape the future of every industry than ever before. Our investments and capabilities make TCS extremely relevant to participate in imagining and co-creating this future with our customers.”
S. Mahalingam, Chief Financial Officer and Executive Director, said: “In the current operating context, it is important for us to remain efficient, keep a healthy grip on expenses, conserve cash and at the same time invest for the future. In this quarter, TCS has posted a credible margin performance at the operating level and we have also expanded our net margins by managing the ongoing currency volatility“. He added: “We will continue to focus on maintaining our strategy of profitable growth to maintain margins to ensure we can invest on an ongoing basis as technology adoption cycles continue to get shorter.”
New CFO to take over in February 2013:
TCS announced that Rajesh Gopinathan, vice president, business finance will take over as the next Chief Financial Officer of the company when S Mahalingam retires on February 9, 2013. He has been appointed Deputy CFO effective today. Rajesh has been with TCS since 2001 when he joined from the Tata Strategic Management Group (TSMG). He currently heads the Business Finance function responsible for financial management of the company’s operating units. He has held several positions in finance, strategy and sales during his career with the company and worked in multiple geographies. He is an MBA from IIM, Ahmedabad and an engineer from REC (Trichy).
Operational Performance:
Growth in Q2 was very broad-based and seen across all industry segments led by Manufacturing, Retail, Telecom and BFSI. There was balanced growth across all service lines with new services like Infrastructure growing in double digits. All markets grew; major markets were led by UK and Europe while growth markets like India, APAC, Latin America and Middle East performed well.
Key Wins
- Won a managed services contract with the largest US-based electronic retailer for total infrastructure services across USA, Canada and Mexico
- Selected by a leading European retailer to manage their Application portfolio across UK and Continental Europe.
- Selected by a UK telecom service provider for providing managed services support across infrastructure, application systems and business processes in a multi-year deal.
- Awarded a multi-million dollar, multi-year contract with an European Government Department.
- Selected for a multi-year, multi-million dollar transformation deal for a large North American insurance and financial services firm to provide consulting and system integration services for policy administration system implementation.
- Selected as a Strategic Partner by a large US multinational financial services corporation to provide Financial Services expertise and Global IT delivery capability.
- Chosen as the strategic partner by an Australian Bank, to transform their core systems, enhance customer engagement and go-to-market capabilities.
- Awarded by a global leader in gas exploration a multi-million, multi-year deal to provide consulting, application management and service integration for their core business processes.
- Chosen by a Telecom Operator from ASEAN region as its transformation partner for BSS Implementation & Integration Services.
To view an unabridged version of this press release, visit: http://www.tcs.com/SiteCollectionDocuments/Investors/Presentations/TCS_PressRelease_IFRS_USD_Q2_13.pdf
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