Revenue at $3.69 billion up 16.7 % Y-o-Y
MUMBAI, July 17, 2014: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS for the quarter ended June 30, 2014.
Financial Highlights for Quarter Ended June 30, 2014
Business Highlights for Quarter Ended June 30, 2014
Commenting on the Q1 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “Robust volumes and healthy growth across all industries and key markets helped TCS start the new financial year on a strong note as our broad-based business portfolio continues to deliver results. We have a strong demand pipeline in place and our customer-centric mindset, leadership in the ‘Digital’ space and strong execution capabilities will help us to sustain our momentum.”
Chandrasekaran added: “On the occasion of the 10th anniversary of TCS’ IPO, the board of directors has announced a special dividend of Rs 40 per share.”
Rajesh Gopinathan, Chief Financial Officer, said: “Our disciplined stance in operations helped us mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter. Looking ahead, we will continue to maintain our operating margins in our desired band by operating efficiently.”
During Q1, TCS posted the highest incremental revenue of $191 million in the last 15 quarters driven by holistic growth across markets led by North America. Asia-Pacific, India, United Kingdom, Europe all continued to grow.
Growth was seen across all industry segments led by Media & Information Services, Life Sciences, Retail, Telecom with all non-BFS verticals growing in excess of five percent sequentially.
Select Key Wins
Key Wins in Digital:
Innovation and Intellectual Property:
As of June 30, 2014, the company has applied for 1804 patents including 58 applied during the quarter. Till date, the company has been granted 129 patents.
Human Resources: Gross Additions 15,817 & Net Additions 4,967
The company continued to drive employee productivity to support business growth. The total employee strength at the end of Q1 was 305,431 on a consolidated basis. The utilization rate (excluding trainees) was at an all-time high of 85.3% and that including trainees was 79.8%. The attrition rate (LTM) was seasonally higher at 12.0% including BPS.
“Our focus on productivity continues to yield results with utilization rates at an all-time high of over 85 per cent. We have already started on-boarding the campus trainees this year with 2,500 joining in June,” said Ajoy Mukherjee, Executive Vice President and Global Head, Human Resources.
Awards and Recognition:
Business Leadership:
Partner:
Sustainability:
* Expenses include an additional one time charge of $29 million in depreciation on account of change in useful life of assets as at April 1, 2014.
Unaudited Condensed Consolidated Statements of Comprehensive Income
For the three-month periods ended June 30, 2013, March 31, 2014 and June 30, 2014
(In millions of USD, except per share data)
|
Three-month period ended June 30, 2013 |
Three-month period ended March 31, 2014 |
Three-month period ended June 30, 2014 |
Revenue |
3,165 |
3,503 |
3,694 |
Cost of revenue |
1,701 |
1,863 |
2,045 |
Gross margin |
1,464 |
1,640 |
1,649 |
SG & A expenses |
608 |
619 |
677 |
Operating income |
856 |
1,021 |
972 |
Other income (expense), net |
78 |
114 |
136 |
Income before income taxes |
934 |
1,135 |
1,108 |
Income taxes |
217 |
265 |
256 |
Income after income taxes |
717 |
870 |
852 |
Minority interest |
16 |
9 |
7 |
Net income |
701 |
861 |
845 |
Earnings per share in USD |
0.36 |
0.44 |
0.43 |
Unaudited Condensed Consolidated Statements of Financial Position
As of March 31, 2014 and June 30, 2014
(In millions of USD)
|
As of March 31, 2014 |
As of June 30, 2014 |
Assets |
||
Property and equipment |
1,726 |
1,754 |
Intangible assets and Goodwill |
692 |
692 |
Accounts Receivable |
3,035 |
3,186 |
Unbilled Revenues |
667 |
715 |
Investments |
576 |
1,444 |
Cash and Cash equivalents |
245 |
345 |
Other current assets |
3,012 |
3,085 |
Other non current assets |
1,520 |
1,210 |
Total Assets |
11,473 |
12,431 |
Liabilities and Shareholders' Equity |
||
Shareholders' Funds |
9,213 |
9,282 |
Long term borrowings |
21 |
20 |
Short term borrowings |
28 |
14 |
Other current liabilities |
1,816 |
2,725 |
Other non-current liabilities |
280 |
275 |
Minority Interest |
115 |
115 |
Total Liabilities |
11,473 |
12,431 |
About Tata Consultancy Services Ltd. (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS,infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognised as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 300,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $13.4 billion for year ended March 31, 2014 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.
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For more information, please contact
Media
Email: Pradipta.bagchi@tcs.coml ashish.babu@tcs.com| shamala.p@tcs.com |h.ramachandra@tcs.com
Phone: +91 22 6778 9999
Investor Relations
Email: Kedar.shirali@tcs.com
Phone: +91 22 6778 9999
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