Saturday, May 5, 2012

TCS - TATA CONSULTANCY SERVICES - Q4 FY 12 RESULTS = Q4 REVENUES UP 30.5% YoY = FY 2012 REVENUES UP 15% YoY = FY 2013 : TO BE EVEN BETTER


TATA CONSULTANCY SERVICES

 (INDIAN GAAP)

TCS crosses $10 b on strong growth momentum in 2011-12;
Annual Revenues up 31% at Rs. 48,894 crore ($10.17 billion)

FY12 Net Profit at Rs.10,413 cr; up 15% Y-o-Y

Q4 Revenues at Rs. 13,259 cr up 30.5% Y-on-Y & 0.4 % Q-on-Q

Q4 Net Profit at Rs. 2,895 cr up 10.4% Y-on-Y & 3.3 % Q-on-Q

Annual Highlights for 2011-12     

            PBT (before Other Income) at Rs.13,495 cr up 29.6%;
          • Volume growth at 23.05%
          • All time high Gross addition: 70,400 employees
          • All time high Net addition: 39,969 employees
          • Total employee strength: 238,583
          • FY12 EPS at Rs. 53.07 (Under IFRS, EPS :Rs.54.4)
          • Total Dividend at  Rs. 25 per share
 including proposed Rs. 8 as Final Dividend and Rs. 8 as Special Dividend

Highlights for 4th Quarter 2011-12

           
            • PBIT (Before Other Income) at Rs.3,678 cr up 27.9% Y-on-Y; (4.6)% Q-on-Q;
          • Gross addition: 19,156 professionals
          • Net addition: 11,832 employees
          • Attrition rate: 12.2 % LTM
          • Utilisation Rate (excl trainees): 80.6 %
          • Utilisation Rate (incl trainees): 71. 3 %
          • EPS at Rs.14.77 (Rs.14.98 under IFRS) in Q4 FY 12 from Rs.14.30 in Q3

Tata Consultancy Services, a leading IT services, consulting and business solutions firm reported its consolidated financial results according to Indian GAAP for the quarter and financial year ended March 31, 2012.

The company became the first Indian IT company to cross the ten billion dollar milestone posting annual revenues of $ 10.17 billion.

Commenting on the 2011-12 performance, N. Chandrasekaran, CEO and MD said: “We have carried our strong momentum through the fourth quarter to close out a year of strong growth. We have kept our focus on profitability and consolidated our market leadership.” He added: “With our customer-centric approach, strong solution set and investments in game-changing technologies like mobility, big data and cloud, we remain well positioned to help our customers transform and drive growth in their businesses.”

Looking ahead to FY13, Mr N Chandrasekaran said: “TCS is well prepared to achieve balanced growth across the industries and markets it operates in, given its holistic portfolio of services which are now achieving significant scale across markets.”

S Mahalingam, Chief Financial Officer and Executive Director, said: “We have grown very well during 2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months.” He added: “Our focus is firmly fixed on the opportunities out there. So while maintaining our cost discipline at an operational level, we continue to invest in capacity and capability as we prepare for growth ahead.”

There was secular growth across markets and industries during the financial year. North America grew by 29.6% to cross $5 billion while Europe including United Kingdom grew by 33.8%. All industry verticals grew in double digits during FY12.

TCS’ full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace - Infrastructure Services, Enterprise Solutions and Business Process Outsourcing service lines each clocked more than $ 1 billion in revenues in 2011-12. All other service lines also grew by double digits.

Key Wins

Ø  Selected by a leading US Insurer as a strategic partner in a multi-year program that aims to help it re-architect its policy and customer management application portfolio and drive greater agility in product development, integrated marketing, and customer experience management
Ø  Partnered with one of the largest European telecom companies to restructure their application and infrastructure management services and help transition from legacy service vendors, re-architect the solution delivery processes and transform to an end-to-end managed services model
Ø  Selected by a leading international automotive retailer to support, develop and globally rollout their dealer & retail management program
Ø  Awarded a multi-million dollar managed services contract by a leading, global smart devices manufacturing company to provide Application Maintenance and Support Services for their core business processes in Supply Chain, Order Management, Sales and Finance Functions
Ø  Selected by a leading USA grocery retailer to deliver end-to-end infrastructure services on a managed services model. TCS is currently their strategic global vendor for IT Services
Ø  Selected by a leading bank in Latin America to be their IT and business solution partner.
Ø  Innovation and Intellectual Property:
Ø  As of 31 March 2012, the company has applied for 855 patents and has been granted 72 patents.

Ø  Human Resources:

Ø  “We have successfully undertaken the largest ever hiring effort in our history by adding and integrating 70,400 professionals during the year. With business demand continuing to be robust, we have made 43,600 offers on campuses for trainees to join us from the second quarter of this fiscal year.” said Ajoy Mukherjee, Executive Vice President, Head, Global Human Resources. “Our efforts to increase retention by engaging with our employees and offering them a progressive career path is paying dividends with attrition rates falling further to 12.2 per cent.”
Ø  $100m+ Clients rise to 14 (8 in FY 11)
Ø  Infrastructure services, Enterprise solutions, BPO Units cross $1 billion in revenues in 2011-12
Ø  Active clients : 1037
Ø  Operating Margin of 27.7% down 155 bps QoQ
Ø  NPM of 22.1% up 26 bps QoQ

High utilization rates have been maintained in the 4th quarter with utilization excluding trainees at 80.6 per cent, while utilization including trainees was at 71.3 per cent. The overall attrition rate was lower at 12.2% with IT attrition at a low of 11.05 per cent and BPO attrition at 21.6% on a LTM basis. The campus hiring process in India has been completed for FY12.

Average age of a TCS employee is 28 yrs and 62.4% of the workforce has more than 3 yrs experience while 31.6% of the workforce comprised of women.

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