Revenue at $3.16 billion; up 16 % Y-o-Y
HONG KONG and SINGAPORE, July 18, 2013 /PRNewswire/ -- Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS US Dollars for the quarter ended June 30, 2013.
Financial Highlights for Quarter Ended June 30, 2013
Business Highlights for Quarter Ended June 30, 2013
Commenting on the Q1 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter."
Mr Chandrasekaran added: "Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth."
Rajesh Gopinathan, Chief Financial Officer, said: "The current environment demands an agile operating model that can capture diverse growth opportunities. We continue to execute to plan and invest for growth, while maintaining stability in our margin profile."
Growth in Q1 was holistic. Growth was seen across all industry segments led by Life Sciences, Retail, Telecom and BFSI. There was balanced growth across IT and other service lines led by Assurance, EiS, Global Consulting and Asset Leveraged Solutions. Major markets grew smartly led by USA, Europe and UK alongside growth in emerging markets like Latin America and Asia Pacific.
During the quarter, TCS closed the acquisition of Alti, one of the top five system integrators of SAP solutions in France with several top French corporations in the banking, financial services, luxury, manufacturing and utilities sectors as its key customers.
Select Key Wins
Key Wins in Digital Services and Solutions
Key Wins in Products/Platforms:
Innovation and Intellectual Property:
As of June 30, 2013, the company has applied for 1340 patents including 60 applied during the quarter. Till date, the company has been granted 90 patents.
Human Resources: Gross Additions 10,611 & Net Additions 1,390
The company continued to hire to support business growth. There was a total gross addition of 10,611 people (net addition of 1,390) taking the total employee strength of 277,586 on a consolidated basis. The utilization rate (excluding trainees) was at 82.7% and that including trainees was 72.5%. The attrition rate (LTM) dropped further sequentially to 10.52 per cent including BPO. The attrition rate in IT was at 9.55 per cent, while BPO attrition was higher at 15.77 per cent.
"We have been able to push our utilization rates further. The on-boarding of current year's engineering graduate trainees will start from this quarter onwards," said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.
Awards and Recognition: Business Leadership:
Partner:
Sustainability:
Leadership:
o "Business Visionary" at NDTV Profit Leadership Awards 2012
o One of STEMconnector's '100 CEO Leaders in STEM'
o "Management Man of the Year 2013" Award -Bombay Management Association
Unaudited Condensed Consolidated Statements of Comprehensive Income
for the quarter ended June 30, 2013, March 31, 2013 and June 30, 2012
(In millions of USD, except per share data)
| Quarter ended June 30, 2013 | Quarter ended March 31, 2013 | Quarter ended June 30, 2012 | |
| Revenue | 3,165 | 3,040 | 2,728 |
| Cost of revenue | 1,701 | 1,621 | 1,468 |
| Gross margin | 1,464 | 1,419 | 1,260 |
| SG & A expenses | 608 | 613 | 510 |
| Operating income | 856 | 806 | 750 |
| Other income (expense), net | 44 | 78 | 33 |
| Income before income taxes | 900 | 884 | 783 |
| Income taxes | 217 | 215 | 172 |
| Income after income taxes | 683 | 669 | 611 |
| Minority interest | 15 | 6 | 7 |
| Net income | 668 | 663 | 604 |
| Earnings per share in USD | 0.34 | 0.34 | 0.31 |
Unaudited Condensed Consolidated Statements of Financial Position
as at June 30, 2013 and March 31, 2013
(In millions of USD)
| As at June 30, 2013 | As at March 31, 2013 | |
| Assets | ||
| -Property and equipment | 1,453 | 1,508 |
| -Intangible assets and Goodwill | 689 | 645 |
| -Accounts Receivable | 2,738 | 2,594 |
| -Unbilled Revenues | 644 | 578 |
| -Investments | 589 | 376 |
| -Cash and Cash equivalents | 362 | 339 |
| -Other current assets | 1,861 | 2,087 |
| -Other non current assets | 1,351 | 1,421 |
| Total Assets | 9,687 | 9,548 |
| Liabilities and Shareholders' Equity | ||
| -Shareholders' Funds | 7,080 | 7,537 |
| -Redeemable Preference Shares | 17 | 18 |
| -Long term borrowings | 22 | 24 |
| -Short term borrowings | 32 | 19 |
| -Other current liabilities | 2,192 | 1,577 |
| -Other non-current liabilities | 223 | 252 |
| -Minority Interest | 121 | 121 |
| Total Liabilities | 9,687 | 9,548 |
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, BPO, 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 277,000 of the world's best-trained consultants in 44 countries. The company generated consolidated revenues of US $11.6 billion for year ended March 31, 2013 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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