TCS Misses On Revenues, Does Well On Margins

Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to Indian GAAP for the quarter ended June 30, 2014

Financial Highlights for Quarter Ended June 30, 2014

• Operating Profit at Rs. 5,935 crore; Growth of 22.5 % Y-o-Y and (6.0%) Q-o-Q
• Operating Margin at 26.8 %
• Total Dividend per share of Rs. 45 including Rs. 40 as special dividend on 10th anniversary of IPO
• Earnings Per Share at Rs. 28.42
• Business Highlights for Quarter Ended June 30, 2014
• Gross Addition 15,817 Employees & Net Additions 4,967 Employees
• All time High Utilization rates at 85.3% (excluding trainees)
• Five new $50+ million clients added

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 yearon 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.”

Mr 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.

To see consolidated & standalone results for quarter ended June 2015, click here.