TCS - TATA CONSULTANCY SERVICES - RESULTS FOR - Q2 FY 2013-14 - Q/E SEP,2013 - EXCELLENT PERFORMANCE ON ALL FRONTS - NUMERO UNO

TATA CONSULTANCY SERVICES

RESULTS FOR Q2 FY 2013-14

Q/E SEP 2013

Revenues surge in Q2

driven by

Highest Volume Growth in Last Nine Quarters

Revenue at Rs.20,977crore

up 16.6% Q-o-Q; up 34.3% Y-o-Y

Net Profit at Rs.4,702crore up 23.9% Q-o-Q; up 33.9% Y-o-Y

Volume Growth at 7.3%

Consolidated financial results according to IFRS

Ø  Operating Profit at Rs.6,330 Cr;

Ø  Growth of 51.5% Y-o-Y and 30.2% Q-o-Q

Ø  Operating Margin at 30.2 %

Ø  Dividend per share of Rs.4

Ø  Earnings Per Share at Rs.24.00

Ø  Gross employee addition:17,362

Ø  Total headcount: 285,250

Ø  Utilization: 83.4%(excluding trainees) & 75.0% (including trainees)

Ø  Number of $100+ million clients increased to 22 from 19

Commenting on the Q 2 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “It has been another great quarter. We have demonstrated all-round strong growth across markets and industries, highlighted by efficient and rigorous execution. Our ongoing investments in industry-led solutions and our efforts to provide insights and articulate the relevance of the digital revolution to business is helping us gain mindshare with customers and differentiate the TCS brand in the market.”

Mr Chandrasekaran added: “We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they reimagine their future in multiple dimensions.”

Rajesh Gopinathan, Chief Financial Officer, said:“Strong volumes, currency tailwinds and firm execution helped us post industry-leading operating margins in this quarter. Our ability to manage operations with a degree of discipline has helped maintain the tempo of investments needed to sustain growth as well as provide superior shareholder returns.”

Growth in Q2 was broad-based with all industries contributing to this holistic performance. Growth was led by Life Sciences, Media, Energy & Utilities and BFSI. All core markets grew smartly with Europe, North America and UK leading the pack. There was balanced growth across IT and other service lines led by Asset Leverage Solutions, Assurance, Enterprise Solutions, Engineering Services and Infrastructure.

RESULTS – INDIAN GAAP

Ø  Operating Profit at Rs.6,305 Cr;

Ø  Growth of 51.1% Y-o-Y and 30.1% Q-o-Q

Ø  Operating Margin at 30.1%

Ø  Dividend per share of `4

Ø  Earnings Per Share at `23.63

OTHER ASPECTS

Revenue:

-INR Revenue of Rs.209,772 Mn, growth of 16.6% QoQ and 34.3% YoY

-USD Revenue of $3,337 Mn,growth of 5.4% QoQand 17.0% YoY

-Constant currency revenue growth of6.0%, volume Growth of 7.3%QoQ

Profit:

-Operating Income at Rs.63,295 Mn, Operating Margin of 30.2%

- Net Income at Rs.47,018 Mn, Net Margin of 22.4%

Demand:

-Clients in $100M+ band up by 3 QoQ , up by5 in H1 FY14

-8 large deals signed across verticals

COMMENTS :

TCS has proved it yet again. It is Numero Uno in the Indian Software Industry. The confidence exhibited by its Management is backed by solid performance across all verticals. The surge in Total Income and Net Profit (QoQ and YoY) are both HIGHLY IMPRESSIVE. It will continue to be an attractive Investment for all Medium / long term Investors.

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