Thursday, July 12, 2012

TATA CONSULTANCE SERVICES (TCS) = FIRST QUARTER RESULTS = Q1 FY 2013 = REVENUE UP 37.7% YoY; NPT UP 37.4% YoY =EXCELLENT PERFORMANCE


TATA  CONSULTANCY  SERVICES

RESULTS FOR Q1 FY 2012-13

Tata Consultancy Services (TCS) reported its consolidated financial results according to Indian GAAP for the quarter ended June 30, 2012. 

Financial Highlights

• Revenues at 14,869 Cr up 37.7% Y-o-Y; 12.1% Q-o-Q
• Net Profit at 3,318 Cr up 37.4% Y-o-Y; 14.6% Q-o-Q
• Operating Profits at 4,077 Cr; Growth of 44.3 % Y-o-Y and 10.8% Q-o-Q
• Operating Margins at 27.4%
• Earnings Per Share at 16.92 

Business Highlights for Quarter Ended June 30, 2012 

                • Gross Addition of 13,831 Employees
                • High Utilisation rates maintained at 81.3% (excluding trainees)
                • 29 New Clients added

CONSOLIDATED P&L ACCOUNT

SUMMARY (Rupees in Crores)

Particulars (Rs.In Crores)
Q1FY13
Q1FY12
Revenue from Operations
14869
10797
Other Income
186
294
Total Revenue
15055
11091
Total Expenses
10798
7977
Profit Before Tax
4257
3114
Tax Expense
899
674
Profit Bef.Mino.Interest
3358
2440
Minority Interest
40
26
Earnings Per Share(In Rs)
16.92
12.32
Cash&Bank Balance*
7765
5378

*Sch.20 however, shows cash & Bank for Q1 FY 12 as Rs.5813 Cr.

The segment wise results indicate the following :

Particulars(Rs.in Cr)
Rev/Prft
Q1FY13
Q1 FY 12
%dif
BFSI
Revenue
6389
4677
36.6
BFSI
Profit
1854
1367
35.63
Manufacturing
Revenue
1175
818
43.64
Manufacturing
Profit
296
194
52.58
Retail&Cons.Pkgd
Revenue
1954
1257
55.45
Retail&Cons.Pkgd
Profit
609
323
88.54
Telec,Media,Entrtt
Revenue
1853
1499
23.62
Telec,Media,Entrtt
Profit
510
465
9.68
Others
Revenue
3498
2546
37.39
Others
Profit
1022
657
55.56
Total
Revenue
14869
10797
37.71
Total
Profit
4290
3005
42.76
Final Net Profit
NPT
3318
2415
37.39







Thus, all segments have performed well.  Equity stands at Rs.295.72 Cr in both quarters. Face Value of each share is Rs.1.

At the current Market Price of around Rs.1240, the quarterly EPS of Rs.16.92 (annualized as 16.92 v 4 = 67.68), the Price Earnings Ratio works out to 18.32. Going forward, with improvements in US and Europe, the fortunes of TCS can improve much further.

Commenting on the Q1 performance, CEO and MD, N Chandrasekaran said: “We have seen strong, secular growth across all our service lines and industry segments driven by robust volumes from key markets like North America, Europe and UK. We have also absorbed impact of wage hikes and maintained our profitability in a volatile setting. He added: “Looking ahead, TCS continues to see good demand from global corporations as they successfully navigate an increasingly complex environment. Our investments in new technologies and platforms are bearing fruit with increasing market traction and we are confident of playing a pivotal role in our customers’ future business.

Key Wins 

         • Signed a $100 M+ contract with a leading North American retailer as its transformation partner.
        • Awarded a multi-million dollar managed services contract by leading North American communications solutions provider for their core business processes
          • Awarded multi-year contract by large Australian financial institution to deliver services for information systems, including data warehouse and business intelligence.
          • Won three year multi-million dollar engagement with a major European clearing house to provide IT Application and Infrastructure services
        • Selected by a top global bio-technology firm for a multi-million dollar, multi- year Drug Safety, Record Management and Regulatory program
         • TCS BaNCS Core Banking has been chosen by a leading bank in Turkey for their international banking operations
      • Won a multi-million dollar, multi-year application management engagement on a managed services model for a leading specialty retailer based in North America

Sample of Engagements won in New Services 

Products
                • In an endorsement of its maturity and market readiness, TCS BaNCS Core Banking product was selected to be implemented on a pre-configured basis by two financial institutions in China for their core banking renewal initiatives
                • TCS BaNCS won the mandate to implement a comprehensive new Health Insurance solution for a group of mutual insurance companies in Europe that will enable them to be market competitive, manage their own business rules and comply with legislation. It will replace all their current applications

Mobility
                • Preparing a roadmap to transform business processes for a global pharmaceutical firm via enterprise mobility framework
                • Building innovative suite of tablet apps for a global bank to deploy with consumers in multiple markets
            • Developing apps for a global high-end audio equipment manufacturer to enable consumers to play cloud-based entertainment content on smart phones
          • Deploying TCS tablet app Crew PowerTM for a major airline to empower cabin attendants to serve customers better

Big Data
                • Delivering Next-gen insights using Big Data frameworks for a global airline, a US-based bank and a global market research firm
                • Setting up leading edge distributed data warehouse for a hi-tech firm using Big Data technologies

Social Media
                • Integration of social media data and internal customer data to transform customer engagement for a major global insurance company
                • Analytics platform to analyse social media conversations impacting brands, consumers
                • Customer intelligence platform for a major global airline

Platforms
                • TCS F&A platform has been chosen by a major European Airline for its global operations across 50 countries 

                • TCS HCM platform has been chosen by a leading bank for standardization of its HR processes company-wide, improving employee experience and providing employee insights 

                • TCS Analytics platform has been chosen by multiple customers



Innovation and Intellectual Property: 

As of June 30, 2012, the company has applied for 914 patents including 59 applied for during the quarter. Till date, the company has been granted 72 patents. 

Human Resources: 

The company continued to hire to support business growth. With campus trainees joining the company from the beginning of July-September quarter, lateral hiring accounted for 75% of total hiring in Q1. There was a total gross addition of 13,831 people (net addition of 4,962) taking the total employee strength of 243,545 on a consolidated basis – in 42 countries. 

The utilization rate (excluding trainees) was at 81.3% and that including trainees was 72.3%. The attrition rate (LTM) was 12.0 per cent. “We have been able to effectively increase our retention rate in the first quarter to over 88% and increase our utilization rates further. The on-boarding of current year’s trainees has begun,” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources. 


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