Tata Consultancy Services (TCS) Q1, FY 17 results indicate renewal and buoyancy. The company posted impressive revenues. For the first quarter ended June 16, the company posted revenues of Rs 29,305 crore, up 3% sequentially and 14% y-o-y. The net income for the quarter stood at Rs 6,317 crore- 0.4% q-o-q and 14.2% y-o-y. The company stated that Digital revenues stood at 15.9% in Q1 driven by demand for business agility.
Commenting on the Q1 performance, CEO and MD, N Chandrasekaran said: “Strong execution and accelerating customer adoption of Cloud, Big Data & Analytics has driven broad-based growth across key markets and industries. Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge. Our rising employee retention rates for three consecutive quarters reflects our focus on engagement and investments we have made to build strong digital talent base. This is paying off with over 165,000 TCSers now trained with significant expertise in new Digital technologies that are rooted in specific domains.”
Rajesh Gopinathan, Chief Financial Officer, said: “This has been a quarter of good financial performance balancing revenue growth, profitability and cash generation. Our disciplined approach to operations have helped us counter strong headwinds in the form of annual salary hikes and promotions as well as global currency and market volatility through the quarter. We continue to invest in people, platforms and products as we look to strengthen our competitive position across key markets.”
During Q1, TCS posted the incremental revenues of $155 million – the highest in last seven quarters upto Q1 – driven by strong growth across core markets in North America, UK and Europe. India was the highlight among growth markets.
Adoption of Cloud, Big Data & Analytics is driving demand in Manufacturing, Energy & Utilities and Communications while front-office transformations are helping growth in Telecom and Media sectors. Consumer businesses like Retail, TTH and Life Sciences are also increasingly using analytics to create rich experiences for each customer and reimagine each unique customer’s journey
Select Key Wins in Q1
§ Selected as a strategic partner by a leading process manufacturing company in North America to bring agility to its IT environment leveraging ignioTM, TCS’ neural automation platform
§ Partnering with a leading European semiconductor equipment manufacturer to enhance supplier experience as well as optimize development and support services
§ Chosen by a leading UK-based bank to increase organisational responsiveness to risk, time-to-compliance and significantly improve employee experience by transforming key functions
§ Chosen by global medical standards body to help reimagine learning and collaboration for doctors worldwide by deploying TCS iON Digital Learning Platform through the medical career cycle.
§ Chosen by a leading Asian airline to bring agility and hyper-connectivity by operating on the Cloud
§ Selected by a leading North American Luxury Retailer as the strategic partner to deliver rich customer experience across channels as well as drive automation and predictability using ignio.
§ Partnering with a North American multi-brand retailer to rapidly expand its global footprint and drive synergies by simplifying the client’s IT landscape and create a platform to enable future business growth.
§ Chosen by a leading North American biopharmaceutical firm as a partner to help improve throughput of their new molecule pipeline and improve regulatory compliance.
§ TCS BaNCS clearing platform chosen by a leading Latin American financial institution to launch clearing and settlement services in one of the biggest markets in the region.
Key Wins in Digital Services and Solutions in Q1:
§ Chosen by a leading global financial services firm to provide its customers with superior onboarding experience across its various products.
§ Engaged by a leading Asian Insurance company for real-time analytics on enterprise performance data using TCS dreamUP.
§ Engaged by a major North American telecommunications provider to re-architect their IoT platform using API and Big Data technologies.
§ Chosen by a North American healthcare provider to enhance agility through DevOps methodology using Cloud technologies.
§ Chosen as a strategic partner by a leading maker of energy equipment to significantly optimise chiller systems using an IoT platform and TCS Sensor Data Analytics framework.
§ Engaged by a North American biopharmaceutical company to provide real time performance analytics using Big Data technologies.
§ Chosen by a UK based supermarket chain to create the Cloud-based roadmap, operating model and architecture using DevOps.
§ Chosen by a North American Healthcare Service provider for a consulting engagement to provide cloud readiness assessment using TCS proprietary methodology and migrate their consumer data onto Cloud.
§ Selected by a Latin American private bank to provide its customers with superior unified experience across multiple channels
Innovation and Intellectual Property:
As of June 30, 2016, the company has applied for 2928 patents, including 67 applied during the quarter. Till date the company has been granted 385 patents.
The total employee strength at the end of Q1 was 362,079 on consolidated basis with gross addition of 17,792 (net addition: 8,236 employees). The total attrition rate (LTM) fell to 13.6% including BPS. The percentage of women in TCS rose to an all-time high of 33.8% while the number of nationalities increased to 131.
“We are delighted that for the third quarter in a row, our attrition rates have fallen underscoring our ability to engage with employees and provide long-term careers. We remain focused on building a team of global professionals with diversity and multiple skill-sets and helping TCSers secure additional skills in new technologies. The process of on-boarding this year’s campus trainees has also begun.” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.