Mumbai: Tata Consultancy Services (TCS), the leading IT services, consulting and business solutions firm, reported its consolidated financial results according to IFRS for the quarter ended June 30, 2012.
Financial highlights for quarter ended June 30, 2012
Business highlights for quarter ended June 30, 2012
Commenting on the Q1 performance, N Chandrasekaran, chief executive officer and managing director, 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 evolution.”
S Mahalingam, chief financial officer and executive director, said, “Our ability to closely monitor and maintain our operating expenses to support higher revenues is helping us maintain healthy margins. This ensures that we are able to continuously make investments needed in technology, capabilities and infrastructure to fuel growth over the long-term." He added, “The unprecedented volatility among major currencies and the Indian rupee will continue to be a challenge in the short term and we are taking the steps to mitigate any risks arising from this scenario."
Growth in Q1 was very broad-based. Growth was seen across all industry segments led by retail, telecom and BFSI. There was balanced growth across IT and other service lines led by BPO, enterprise solutions and infrastructure services. Major markets grew smartly led by UK, USA and Europe grew alongside growth markets like Latin America.
Sample of engagements won in new services
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.
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 percent 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.
The utilisation rate (excluding trainees) was at 81.3 percent and that including trainees was 72.3 percent. The attrition rate (LTM) was 12 percent. “We have been able to effectively increase our retention rate in the first quarter to over 88 percent and increase our utilisation rates further. The on-boarding of current year’s trainees has begun,” said Ajoy Mukherjee, executive vice president and global head, human resources.
Awards and recognition
TCS was ranked as the 4th most valuable brand in global IT services by Brand Finance. It was named Largest Systems Integrator by Communication, Multimedia and Infrastructure Association of India. Genworth Financial Inc has named the company as its Strategic Supplier of the Year. It also won the prestigious Microsoft IT – Supplier Innovator of the Year award.
The company maintained its No 1 position in the Nordic region for the third consecutive year in the annual KPMG Nordic region performance study. TCS China was ranked among Top 10 global service providers in China. International Data Corporation rated TCS BPO as a MarketScape Leader Worldwide for its business analytics BPO services. TCS Hong Kong received the Caring Company Award 2012 by Hong Kong Council of Social Service for its CSR.
TCS was ranked No1 in India by Institutional Investor's 2012 all Asia executive team rankings. FinanceAsia ranked Mr Chandrasekaran among the top
two CEOs; Mr Mahalingam was ranked the best CFO in India. Mr Chandrasekaran
was also ranked No 1 in the best CEO in the Thomson Reuters Extel India IR survey.