TATA CONSULTANCY SERVICES (TCS) - RESULTS FOR - Q4 & FY 2013-14 - FY 14 NPT UP 37.7%; Q4 NPT UP 48.2% YoY - CONFIDENT OF FY 15

TATA CONSULTANCY SERVICES (TCS)

RESULTS FOR Q4 & FY 2013-14

TCS strengthens global market position in FY14; Growth momentum continues; 

Ø  Annual Revenues up 29.9% at Rs.81,809 crore

Ø  FY14 Net Profit at Rs.19,164 cr; up 37.7% Y-o-Y

Ø  Q4 Revenues at Rs.21,551cr up 31.2% Y-on-Y &1.2% Q-on-Q

Ø  Q4 Net Profit at Rs.5,358cr up 48.2% Y-on-Y & 0.5% Q-on-Q

ANNUAL HIGHLIGHTS FOR 2013-14

Ø  Total Income Rs.81,809 Cr (Rs.62,989 cr in FY 13)

Ø  Total Expenditure : Rs.56,656 cr(Rs.Rs.44.949 cr in FY 13)

Ø  Profit Before Taxes : Rs.25,402 cr (Rs.18,090 cr in FY 13)

Ø  Net Profit Rs.19,164 cr (Rs.13,917 cr in FY 13)

Ø  PBIT (before Other Income) at `23,803 cr

Ø  Volume growth at 17.39%

Ø  Gross addition :  61,200 employees

Ø  Net addition: 24,268 employees

Ø  Total employee strength: 300,464

Ø  EPS at Rs. 97.67 ( Rs.70.99 in FY 13)

Ø  Total Dividend at  Rs.32 per share including proposed Rs.20 as Final Dividend

Highlights for 4^th Quarter 2013-14

Ø  Total Income Rs.21,551 Cr (Rs.16,430 cr in FY 13)

Ø  Total Expenditure : Rs.14,862 cr(Rs.Rs.11,813 cr in FY 13)

Ø  Profit Before Taxes : Rs.7,023 cr (Rs.4,751 cr in FY 13)

Ø  Net Profit Rs.5,338 cr (Rs.3,616 cr in FY 13)

Ø  PBIT (before Other Income) at `6,314 cr

Ø  Volume Growth : 2.59% Q-on-Q

Ø  Gross addition: 18,564 professionals

Ø  Net addition: 9,751 employees

Ø  Attrition rate: 11.3% LTM

Ø  Utilisation Rate (excl trainees): 83.8%

Ø  Utilisation Rate (incl trainees): 77.9%

Ø  EPS at Rs.27.27 in Q4 from Rs.27.20 in Q3FY 14 & Rs.18.46 in Q4FY 13

Commenting on the 2013-14 performance, N. Chandrasekaran, CEO and MD said:

“We have delivered strong growth and strengthened our competitive positioning in the market. We have maintained our momentum, improved our quality of growth, deepened our relationship with customers and expanded our presence in newer markets like Europe during the past 12 months. Our strategic investments including those in Digital Technologies are providing a compelling value proposition as well as helping us anticipate and shape new market trends successfully.”

Looking forward to financial year 2014-15, Mr Chandrasekaran added : “We are upbeat that the next 12 months will bring many more opportunities for growth across multiple industries and markets. As an organization, we remain focused on disciplined execution of our strategy as well as on energizing 300,000 TCSers to ensure they make a difference to their customers, their colleagues and the community.”

Key Digital Wins in Q4

 Engaged by large Australian retailer for multi-channel enablement of merchandising systems using master data management

 Selected by a major European Bank for a consulting engagement to define strategic roadmap leveraging Big Data for its credit risk transformation program

 Chosen by a leading merchandiser to rollout a field sales mobile application in Asia Pacific

 Chosen by European supplier of photolithography systems to strategize and execute all its mobility projects

 Engaged by North American insurance firm to enhance property casualty management using Big Data

 Selected by a leading US telecom service provider to create a real time ecosystem for data-driven Decision making

 Implementing a customer decision platform to enhance guided behavior for a North America based leading Telecom provider

 Engaged by a global aerospace product manufacturer to develop creative user experience designs

 Engaged by a global Hi-Tech Company to transform their sales and operations Business Intelligence systems using Big Data technologies

 Engaged by a British pharmaceutical and healthcare company to transform its supply chain analytics using Big Data

 Define and execute strategy for Master Data Management programs for North American aircraft engine manufacturer

 Consult on transforming order-to-cash business processes using Big Data for European telecom manufacturer

 Create integrated marketing and technology platform for large global media and information services firm

 Redefining customer interfaces for leading North American Insurance provider for all online platforms

 Develop field force solution for a direct broadcast satellite television provider in India

 Engaged by leading UK Bank for developing a suite of consumer facing mobile applications

 Engaged by European telecom manufacturer to perform consumer analytics using the Big Data platform

 Develop patient survey mobile application for one of the largest US based pharmaceutical companies

 Engaged by a middle-east petrochemical company for mobile application development and testing.

Engaged by leading European Utility to operate and transform customer service processes with an aim to making them a leader in customer satisfaction within the industry.

 Selected by a North American Fortune-500 multi-specialty pharmaceutical company for a multi-year, multi-million dollar deal in the area of core infrastructure operations

 Awarded multi-year engagement by North American global leader in process manufacturing to transform and manage its global infrastructure

 Selected by large European insurer to enhance customer experience by modernizing its IT footprint

 Selected by Middle East based global shipping company to establish a Shared Service Center covering Shipping Documentation and Finance & Accounting processes

 Awarded a contract by a leading retail bank in Middle East to transform & run mission critical systems & operations, leveraging TCS BaNCS and full spectrum of managed services.

 Selected by leading Publisher to consolidate and transform technology infrastructure to accelerate digital transformation

 Selected by a leading European apparel and general merchandize retailer to manage their end-to-end application and infrastructure operations

Human Resources:

“We trained and integrated 61,200 professionals who joined TCS during 2013-14. With business demand continuing to be robust, we have made almost 25,000 fresh offers on engineering campuses for trainees who will join us from the second quarter of the new fiscal year.” said Ajoy Mukherjee, Executive Vice President, Head, Global Human Resources. “We continue to build a next-gen organization that is social, engaged and collaborative and these efforts are having a positive impact with retention rates rising in the last financial year as employees see TCS as an organization that offers them a progressive career path. 

The total employee strength of the company stood at 300,464 professionals. In Q4, the gross employee additions were 18,564 and net employee additions were 9,751 professionals. Of these 7,572 Trainees and 7,401 Laterals recruited in India, while 3,591 employees were hired in international locations. 

High utilization rates have been maintained in the fourth quarter with utilization excluding trainees at 83.8 per cent, while utilization including trainees was at 77.9 per cent. The overall attrition rate was at 11.3 per cent with IT attrition at a low of 10.40 per cent and BPS attrition below 15 per cent threshold to 14.90 per cent on a LTM basis.

The average age of a TCS employee is 29 years while 32.7 per cent of the workforce comprised of women with 118 nationalities represented in the workforce.

Innovation and Intellectual Property:

As of March 31, 2014, the company has applied for 1746 patents including 211 applied during the quarter. Till date, the company has been granted 114 patents.

About Tata Consultancy Services Ltd (TCS)

TCS 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, BPS,infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognised as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 300,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $13.4 billion for year ended March 31, 2014.       

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