TCS Q1 Results: Company Reports IT Services Attrition Rate at 8.6%

TCS Q1 results were announced on 8 July, and the company reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending30 June 2021. Rajesh Gopinathan, chief executive officer and managing director, TCS said that the company’s business in North America, BFSI and Retail has shown appreciable growth. “Given the variants of the virus and fears of a potential third wave, we are watchful of the emerging situation and remain optimistic of the opportunities in our core markets and verticals,” he said.

Highlights of the TCS Q1 Results

• Revenue at $6.154 billion, +2.7% QoQ, +21.6% YoY
• Constant currency revenue growth: +16.4% YoY
• Operating Margin at 25.5%; expansion of 1.9% YoY
• Net Income at $1.22 billion, +32.0% YoY, Net Margin at 19.8%
• Net Cash from Operations at $1.39 billion i.e. 114.3% of Net Income
• Highest ever quarterly net headcount addition of 20,409, Workforce strength: 509,058
• Diverse and inclusive workplace: Women in the workforce: 36.2% and 155 Nationalities
• Building a G&T workforce: 407K+ employees trained in new technologies, 19K contextual masters identified and 3,500 elevate graduates
• Best-in-class talent retention: LTM IT Services attrition rate at 8.6%
• Dividend per share: Rs 7.00

All verticals showed good sequential as well as YoY growth. Growth continued to be led by Life Sciences and Healthcare (+7.3% QoQ, +25.4% YoY). Retail and CPG also bounced back to double-digit growth, growing 4.4% QoQ and 21.7% YoY. BFSI (+3.1% QoQ, +19.3% YoY), Manufacturing (+4.8% QoQ, +18.3% YoY), Technology and Services (+5% QoQ, +12.3% YoY) and Communications and Media (+1.7% QoQ, +6.9% YoY) also saw significantly improved performance.

Samir Seksaria, chief financial officer, TCS said: “We crossed the $6 billion milestone in quarterly revenue this quarter. In addition to our annual salary increase and promotions, we undertook one of the largest vaccination drives in the private sector. Despite this and headwinds in regional markets, we expanded our Q1 operating margin year on year, reflecting the inherent resilience of our business model. Looking ahead, we stay focused on making the right investments to power our expansion in the growth and transformation opportunity, while sustaining our industry-leading profitability.”

TCS Employee Headcount

TCS’ employee headcount crossed the 500,000 mark in Q1, with 509,058 employees as of 30 June, a net addition of 20,409, its highest quarterly net addition ever. The workforce continues to be very diverse, comprising 155 nationalities and with women making up 36.2% of the workforce. Employees logged over 10 million learning hours in Q1. Over 478,000 employees have been trained in Agile methods and over 407,000 employees have been trained on multiple new technologies. IT Services attrition rate (LTM) was at 8.6%.

We continued to place a premium on associate health and wellbeing and have taken vaccination as a priority for all our associates, dependents and contract staff. In less than two months, over half a million associates and family members and over 70 percent of our associates have been vaccinated, and we are on track to vaccinate all TCSers and families by September,” said Milind Lakkad, chief HR officer.