TATA CONSULTANCY SERVICES
 |
| N.CHANDRASEKHARAN MD & CEO |
Results for Q2 FY 2013 (Sep-2012)
Tata Consultancy
Services has again reported INDUSTRY-BEST consolidated financial results for
the quarter ended September 30, 2012, to confirm its status as No.1 in the IT
services Industry.
.
Highlights for Quarter
Ended September 30, 2012
Revenue: INR Revenue of Rs.156,208
Mn, growth of 5.1% QoQ and 34.3% YoY
·
USD Revenue of $2,853 Mn, growth of
4.6% QoQ and 13.0% YoY
·
Constant currency revenue growth of
4.8%, volume growth of 4.9% QoQ
Profit: Operating Income at Rs.41,789 Mn, Operating Margin of 26.8%
·
Net Income at Rs.35,123 Mn, Net
Margin of 22.5%
Demand: 41 new clients added during the quarter; Active clients: 1041
·
Strong deal closures; 11 large
deals signed across verticals
People: Gross addition of 18,654 associates, closing headcount: 254,076
·
Utilization : at 81.6%
(ex-trainees) and 72.8% (including trainees)
·
Employee retention continues to be
best in industry; LTM Attrition (IT Services) at 10.2%
·
Growth from all markets and industries highlights Q2
performance
·
Volume growth at 5% driven by new service offerings
·
New CFO announced: Rajesh Gopinathan to take over as CFO
after S. Mahalingam’s retirement in February 2013
·
Revenue
at Rs.15,621 Cr up 34.3 % Y-o-Y; 5.1 % Q-o-Q; That compares with 2.5% growth at Infosys and 3% at HCL.
·
Net Profit at Rs.3,512
Cr up 44 % Y-o-Y; 7.1 % Q-o-Q
REVENUE % TABLE (Growth By Domain)
REVENUE%
|
Q2FY13
|
Q1FY13
|
QoQ%
|
Q2FY12
|
YoY%
|
BFSI
|
42.8
|
43
|
4.7
|
43.5
|
31.7
|
Telecom
|
10.3
|
10.3
|
5.2
|
10.7
|
28.8
|
Retail
|
13.4
|
13.2
|
7
|
12.1
|
48.3
|
Manufacturing
|
8.2
|
7.9
|
9.5
|
7.8
|
42.5
|
Hi-Tech
|
5.9
|
6
|
3.6
|
5.9
|
35.6
|
Life
|
5.2
|
5.3
|
1.8
|
5.3
|
32.1
|
Travel
|
3.6
|
3.7
|
3.2
|
3.8
|
27.2
|
Energy
|
3.6
|
3.6
|
2.8
|
4.3
|
12.6
|
Media
|
2.2
|
2.2
|
4.4
|
2.1
|
44.2
|
Others
|
4.8
|
4.8
|
4.5
|
4.5
|
43.1
|
Total
|
100
|
100
|
5.1
|
100
|
34.3
|
Clients Contribution
|
||
Revenue%
|
Q2FY13
|
Q1FY13
|
Top 1
|
6.5
|
6.7
|
Top 5
|
18.4
|
18.8
|
Top 10
|
25.6
|
26.5
|
US$ 1Mln
|
538
|
527
|
US$ 5 Mln
|
269
|
259
|
US$ 10 Mln
|
182
|
175
|
US$ 20 Mln
|
108
|
105
|
US$ 50 Mln
|
45
|
46
|
US$ 100 Mln
|
14
|
14
|
*Last 12 Mnths
|
||
INDIAN GAAP INCOME STATEMENT – CONSOLIDATED
CONSOLIDATED
|
Rs.Cr
|
%Of Rev.
|
||||
Q2FY13
|
Q1FY13
|
Q2FY12
|
Q2FY13
|
Q1FY13
|
Q2FY12
|
|
INCOME
|
||||||
IT&CONSULT.SERVICES
|
15,188
|
14,521
|
11,296
|
97.23
|
97.66
|
97.1
|
Mfg,Eqpt Sale,Lic.
|
433
|
348
|
337
|
2.77
|
2.34
|
2.9
|
Total Income
|
15,621
|
14,869
|
11,633
|
100
|
100
|
100
|
EXPENDITURE
|
||||||
Sal& Wages
|
5,947
|
5,707
|
4,501
|
38.07
|
38.38
|
38.69
|
Overseas BusnsExp
|
2,182
|
2,063
|
1,649
|
13.97
|
13.87
|
14.17
|
Other Oprtg Exp
|
3,053
|
2,775
|
2,099
|
19.55
|
18.67
|
18.05
|
TotalExp
|
11,182
|
10,545
|
8,249
|
71.59
|
70.92
|
70.91
|
EBITDA
|
4,439
|
4,324
|
3,384
|
28.41
|
29.08
|
29.09
|
Interest
|
15
|
6
|
9
|
0.1
|
0.04
|
0.08
|
Depreciation
|
266
|
247
|
232
|
1.7
|
1.66
|
1.99
|
OtherIncome
|
328
|
186
|
123
|
2.11
|
1.25
|
1.05
|
ProfitBef.Taxex
|
4,486
|
4,257
|
3,266
|
28.72
|
28.63
|
28.07
|
Provis.for Tax
|
1,016
|
899
|
938
|
6.51
|
6.05
|
8.06
|
Profit aft.Tax
|
3,470
|
3,358
|
2,328
|
22.21
|
22.58
|
20.01
|
MinorityIntt
|
36
|
40
|
27
|
0.22
|
0.26
|
0.23
|
Net Profit
|
3,434
|
3,318
|
2,301
|
21.99
|
22.32
|
19.78
|
Operating Income at Rs.4,179 Cr; Growth
of 32.5 % Y-o-Y and 2.2 % Q-o-Q
Operating Margin at 26.8%
Dividend per share of Rs.3
Earnings Per Share at Rs.17.95 (Rs.16.76
in Q1FY13; Rs.12.46 in Q2 FY12)
Gross
Addition of 18,654 Employees (Net addition: 10,531)
Lowest
Attrition Rate in last 10 quarters: 11.4% (IT + BPO)
Operational
Performance:
Growth in Q2 was
very broad-based and seen across all industry segments led by Manufacturing,
Retail, Telecom and BFSI. There was balanced growth across all service lines
with new services like Infrastructure growing in double digits. All markets
grew; major markets were led by UK and Europe while growth markets like India,
APAC, Latin America and Middle East performed well.
Key Wins
Won a
managed services contract with the largest US-based electronic retailer for
total infrastructure services across USA, Canada and Mexico
Selected by a leading European retailer to manage their Application portfolio
across UK and Continental Europe.
Selected by a UK telecom service provider for providing managed services
support across infrastructure, application systems and business processes in a
multi-year deal.
Awarded a multi-million dollar, multi-year contract with an European Government
Department.
Selected for a multi-year, multi-million dollar transformation deal for a large
North American insurance and financial services firm to provide consulting and
system integration services for policy administration system implementation.
Selected as a Strategic Partner by a large US multinational financial services
corporation to provide Financial Services expertise and Global IT delivery
capability.
Chosen
as the strategic partner by an Australian Bank, to transform their core
systems, enhance customer engagement and go-to-market capabilities.
Awarded by a global leader in gas exploration a multi-million, multi-year deal
to provide consulting , application management and service integration for
their core business processes.
Chosen by a
Telecom Operator from ASEAN region as its transformation partner for BSS
Implementation & Integration Services.
Sample of
Engagements won in New Services
Products and
Platforms
TCS
BaNCS Custody chosen for deployment by a major Middle Eastern bank
TCS
BaNCS Corporate Actions being deployed by a leading global US-based bank
TCS
BaNCS Wealth Management chosen by one of the world's largest US-based
investment management companies
TCS HR and Payroll
platform chosen by a leading UK operator of restaurants
Mobility
Partnered
with major North American retailer to co-create consumer mobility solutions and
bring interactivity to the shopping experience
Selected by a large North American Retailer to improve store efficiencies by
mobile enabling store operations
Selected
by a leading European Bank as Mobility Partner to develop strategic mobile
retail applications to provide rich customer experience
Consulting to
develop holistic mWallet strategy for a leading regional US Bank including
defining eco-system required to drive mWallet offering
Developing
mobility solution for private banking customers for a leading US based Global
Bank entailing conceptualization and design to enable deeper customer
experience and engagement
Developing retail
and wealth management mobile applications for a leading Canadian bank by
working closely with the bank and its supplier ecosystem
Big Data
Used
Big Data technologies to convert legacy linear analytical engines to
distributed computing models for a global market research firm which enabled
the customer to leverage entire population data instead of sample data analysis
and driving a 10x improvement in execution time.
Chosen by a global
food & beverage firm as Big Data Solution development partner to and
generate granular insights and forecasts using advanced analytical models with
scalable computation
Transformation
Signed
agreement with a leading beverage company to deliver their European Supply
Chain Master Planning solution and help customer obtain a regional supply
network optimization capability
Engaged by a leading US manufacturer for an enterprise level SAP deployment
roadmap and assessment
Selected by a large UK retail bank as a strategic partner to transform the
account opening process of their Corporate Banking business
Selected as a
strategic partner for the "Digital Transformation Program" for a US
based Payment Company.
Innovation and
Intellectual Property
As of September 30,
2012, the company has applied for 1017 patents including 103 applied for during
the quarter. Till date, the company has been granted 74 patents.
Human Resources
Total gross addition
of 18,654 people (net addition of 10,531) during Q2. Total employee strength at
end of Q2 was 254,076 on consolidated basis. Of the total gross additions,
fresh graduates accounted for 69% in India. Utilization rate (excluding
trainees) was at 81.6% and including trainees at 72.8%. The attrition rate
(LTM) fell further to 11.4 per cent overall including IT and BPO. Increased our retention rate further to 88.6%.
Dollar revenues
popped 4.6% sequentially to $2.85 billion, while net profit was 6.4% to $643
million. In rupee terms, the bottomline surged 7.1% to Rs 3,512 Cr, according
to IFRS.
There was a
forex gain of Rs 92 Cr against a forex loss of Rs 93 Cr same time last year.
Operating
income at Rs 4,179 Cr grew 2.2% sequentially, led by an operating margin of
26.8%.
TCS is on track
to hire 25,000 campus recruits in 2013. Of this, 12,000 have already been given
offer letters.
* *
* E N
D * * *
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