CIMdata PLM Industry Summary Online Archive
14 January 2013
Financial News
TCS Delivers Well-Rounded Performance in Q3
Tata Consultancy Services reported its consolidated financial results according to IFRS for the quarter ended December 31, 2012.
Highlights for Quarter Ended December 31, 2012
- Operating Income at $804 Mn; a growth of 6.3% y-o-y and 5.3% q-o-q
- Dividend per share of ` 3
- Earnings Per Share at $0.33
- Gross Addition of 17,145 Employees (Net addition: 9,561)
- Attrition in IT Services falls to 9.8%; overall attrition including BPO at 11.2%
- Utilisation rate at 81.7% (excluding trainees)
Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “We have had an excellent quarter of well rounded performance and have driven a higher quality of revenue and increased profitability through focus on productivity and innovation. We had good revenue growth, balanced across service-lines, industries and geographies; our agile, customer-centric organization is delivering an increasing number of larger and deeper client relationships.” He added: “We believe that clients are going to invest in making their operations ‘digital-ready’ in 2013 and drive business growth. TCS is well positioned to help our clients in this journey.”
S. Mahalingam, Chief Financial Officer and Executive Director, said: “The overall performance has been in line with what we had outlined at the beginning of the year. Our superior execution in this seasonally weak quarter has delivered productivity gains and an expanded operating margin.” He added: “Our business model of delivering growth with the desired profitability requires us to invest in the front-end and in new capabilities and we will continue to make those investments.”
Operational Performance:
Growth in Q3 was broad-based. Among mature markets, USA and UK led the growth story. Amongst growth markets, Latin America showed double digit growth sequentially, followed by India. Amongst industries, growth was led by Banking, Financial Services and Insurance (BFSI), Energy & Utilities, Manufacturing & Retail & Distribution. In terms of services, TCS’ full services capabilities continue to be leveraged by customers with newer service lines like Enterprise Solutions, Infrastructure Services and Global Consulting driving growth. Asset Leveraged Solutions and Engineering and Industrial Services also showed higher growth.
Key Wins
- Signed a large service management deal with global financial services major in US, as the sole provider entrusted with their entire application portfolio. TCS’ Global Network Delivery Model (GNDM™) will be leveraged to deliver services seamlessly from centers in Mexico, China, Philippines and India.
- Engaged by one of the leading financial institutions in Asia as a strategic partner for maintaining, supporting and upgrading their core systems and infrastructure.
- Awarded a multi-million dollar, multi-year contract by a Mexican government department.
- Selected by a US-based communications company for a multi-year back-office transaction processing deal.
- Chosen by a global leader in logistics as its assurance service partner in a multi-year, multi-million dollar enterprise transformation initiative.
- Selected for a multi-year, multi-million dollar deal by a Global CPG company for their enterprise level SAP transformation and global roll-out.
- Won a multi-year, multi-million dollar deal to be strategic partner to a North American healthcare company to establish and provide support to their shared services initiative.
To view an unabridged version of this press release, visit: http://www.tcs.com/SiteCollectionDocuments/Investors/Presentations/TCS_PressRelease_IFRS_USD_Q3_13.pdf
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