Tata Consultancy Services, a leading global IT services, consulting and business solutions organization, reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2019.
Financial Highlights for Quarter Ended September 30, 2019
- Revenue at $5,517 million, +5.8% YoY
- Constant Currency revenue growth: +8.4% YoY
- Net Income at $1,139 million, +1.8% YoY
- Operating Margin at 24%; Net Margin at 20.6%
- Earnings Per Share at $0.3, +3.8% YoY
- Net Cash from Operations at 108% of Net Income
- Total Dividend per share of ₹45 per share including ₹40 as special dividend
Record date 18/10/2019; Payment date 24/10/2019
Business Highlights for Quarter Ended September 30, 2019
- Digital revenue: 33.2% of total, +27.9% YoY
- Life Sciences & Healthcare continues to outperform, +16% YoY; Communications & Media grew +11.8%
- UK and Europe lead growth: +13.3% YoY and +16% YoY respectively
- Net addition of 14,097 employees: highest ever number of employees onboarded in a quarter
- Continued investments in organic talent development:
- 322K+ employees trained in digital technologies
- 391K+ employees trained in Agile methods
- Industry-leading talent retention: IT Services attrition rate at 11.6% LTM
Commenting on the Q2 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said,“We ended the quarter with steady growth despite increased volatility in the financial services and retail verticals. We remain confident as the medium and longer term demand for our services continues to be very strong, as evidenced by our Q2 order book – the highest in the last six quarters.”
He added,“Digital disruption across multiple industries is making rapid, scalable innovation a critical imperative in the Business 4.0™ world. In the auto sector, our scale in advanced engineering R&D skills and depth in digital technologies like AI and IoT are making us the preferred innovation partner to leading OEMs, embedding us deeply into their product R&D value chain. Our strategic partnership with General Motors for their next generation mobility initiatives is a powerful illustration of this.”
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said, “Our point of view on anchoring or participating in digital ecosystems, and the Business 4.0™ framework, are clearly helping clients in their growth and transformation journeys. We continue to make significant investments in differentiating digital capabilities that are helping us participate in key growth areas of our clients technology spend – be it their cloud transformation, data maturity or in advancing their automation agenda.”
He added,“Our products and platforms are seeing increased client adoption and market coverage. During the quarter, we launched a unified TCS BaNCS Asset Servicing platform for asset managers, broker-dealers and custodians and a comprehensive Site Feasibility Assessment platform within our Advanced Drug Development platform suite. Our diversified industry and geography presence, and largest Agile Ready workforce, together with our Machine First™ approach to continuous improvement and innovation augurs well for our future growth.”
V Ramakrishnan, Chief Financial Officer, said, “We have been gearing up for growth despite the volatility. Our margins in Q2 reflect our continued investments in our people, and in building the capacity we need to fulfill our strong order book.”