TCS delivers well-rounded performance in Q3
-- Revenue of $2,948 Mn; up 14 % Y-o-Y; 3.3 % Q-o-Q
-- Operating Margin expands 51 basis points to 27.3%
-- Net Income at $652 Mn; up 14.8 % Y-o-Y; 1.4% Q-o-Q
-- Attrition in IT Services dips below 10%
-- Number of $100-million-plus clients increases to 16 from 14
MUMBAI, India, Jan. 14, 2013
MUMBAI, India, Jan. 14, 2013 /PRNewswire/ -- Tata Consultancy Services (BSE:
532540, NSE: TCS), the leading IT services, consulting andbusiness solutions
firm reported its consolidated financial results according to IFRS for the
quarter ended December 31, 2012.
Highlights for Quarter Ended December 31, 2012
oOperating Income at $804 Mn; a growth of 6.3% y-o-yand 5.3% q-o-q
oDividend per share of ` 3
oEarnings Per Share at $0.33
oGross Addition of 17,145 Employees (Net addition: 9,561)
oAttrition in IT Services falls to 9.8%; overall attrition including BPO at
oUtilization rate at 81.7% (excluding trainees)
Commenting on the Q3 performance, Chief Executive Officer and Managing
Director, N Chandrasekaran said:
"We have had an excellent quarter of well rounded performance and have driven
a higher quality of revenue and increased profitability through focus on
productivity and innovation. We had good revenue growth, balanced across
service-lines, industries and geographies; our agile, customer-centric
organization is delivering an increasing number of larger and deeper client
relationships." He added: "We believe that clients are going to invest in
making their operations 'digital-ready' in 2013 and drive business growth. TCS
is well positioned to help our clients in this journey."
S. Mahalingam, Chief Financial Officer and Executive Director, said: "The
overall performance has been in line with what we had outlined at the
beginning of the year. Our superior execution in this seasonally weak quarter
has delivered productivity gains and an expanded operating margin." He added:
"Our business model of delivering growth with the desired profitability
requires us to invest in the front-end and in new capabilities and we will
continue to make those investments."
Growth in Q3 was broad-based. Among mature markets, USA and UK led the growth
story. Amongst growth markets, Latin America showed double digit growth
sequentially, followed by India. Amongst industries, growth was led by
Banking, Financial Services and Insurance (BFSI), Energy & Utilities,
Manufacturing & Retail & Distribution. In terms of services, TCS' full
services capabilities continue to be leveraged by customers with newer service
lines like Enterprise Solutions, Infrastructure Services and Global Consulting
driving growth. Asset Leveraged Solutions and Engineering and Industrial
Services also showed higher growth.
oSigned a large service management deal with global financial services
major in US, as the sole provider entrusted with their entire application
portfolio. TCS' Global Network Delivery Model (GNDM™) will be leveraged to
deliver services seamlessly from centers in Mexico, China, Philippines and
oEngaged by one of the leading financial institutions in Asia as a
strategic partner for maintaining, supporting and upgrading their core
systems and infrastructure.
oAwarded a multi-million dollar, multi-year contract by a Mexican
oSelected by a US-based communications company for a multi-year back-office
transaction processing deal.
oChosen by a global leader in logistics as its assurance service partner in
a multi-year, multi-million dollar enterprise transformation initiative.
oSelected for a multi-year, multi-million dollar deal by a Global CPG
company for their enterprise level SAP transformation and global roll-out.
oWon a multi-year, multi-million dollar deal to be strategic partner to a
North American healthcare company to establish and provide support to
their shared services initiative.
Innovation and Intellectual Property:
As of December 31, 2012, the company has applied for 1088 patents including 71
applied for during the quarter. Till date, the company has been granted 76
At the end of Q3, the total employee strength of the company was 263,637 with
a gross addition of 17,145 employees which included 9,831 trainees & 5,072
laterals in India as well as 2,242 employees in international locations. The
net addition was 9,561 employees. Attrition rate in IT Services fell further
to 9.8% (LTM). Overall attrition, including BPO (22.3% LTM), was 11.2% (LTM).
Non-Indian nationals, representing 112 nationalities, formed 7.6% of the total
employee base. Women made up 32% of the workforce. Utilization in Q3 was at
81.7% (excluding trainees) & 72.1% (including trainees).
"We have hired almost 50,000 professionals in the first three quarters of this
financial year to support business growth and we continue to forecast a
healthy growth in the workforce numbers going forward," said Ajoy Mukherjee,
Executive Vice President and Head, Global Human Resources.
Awards and Recognition
TCS was ranked as the most valuable company of 2012 in the Business Today 500.
It was also rated among the greenest companies worldwide by the Newsweek
magazine. The company was also rated as top ICT Employer of the year in the
Netherlands. TCS China was selected among '100 Best Human Resource Management
(HRM) Companies' during 2012. TCS was also awarded the best employer in IT
industry in 'Recognition of Grooming of Human Capital in Chile' for the year
2012 by DuocUC.
TCS' High Performance Computing (HPC)-driven technology won the 2012 HPC
Innovation Excellence Award. The company won the 'Innovation Partner for
Enterprise Solutions' award at EMC Momentum 2012. It was also awarded the
Thomson Reuters India Innovation Awards 2012 in the Hi-Tech Corporate
category. TCS won IT Services Marketing Association (ITSMA) Diamond Award. The
Computer Society of India (CSI) adjudged Ministry of External Affairs'
Passport Seva Project (PSP) as the most significant e-Governance initiative of
the Government of India undertaken during 2011-12. MPOnline won the "Manthan
Award" for eGovernance project. TCS received QuEST Forum India Quality Award
2012 for the Top Software Company.
CEO N Chandrasekaran was awarded the "Outstanding Business leader of the year"
by CNBC Asia's India Business Leader (IBLA) of the year and the "Asia Business
Leader Award of the year" (ABLA) awards 2012. He was also presented with the
'Pathfinder CEO' award by National HRD Network (NHRDN). CFO S Mahalingam won
the marquee 'CFO of the Year' award and TCS' Finance team was recognized as
the 'Finance Team of the Year' at the CFO Innovation Asia Awards in Singapore.
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™, recognized as
the benchmark of excellence in software development. A part of the Tata Group,
India's largest industrial conglomerate, TCS has over 263,000 of the world's
best trained consultants in 42 countries. The Company generated consolidated
revenues of US $ 10.17 billion for year ended 31 March, 2012 and is listed on
the National Stock Exchange and Bombay Stock Exchange in India. For more
information, visit us at www.tcs.com
SOURCE Tata Consultancy Services
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