Mumbai: Tata Consultancy Services (TCS) (BSE: 532540, NSE: TCS), the leading IT services, business solutions and outsourcing firm reported its consolidated financial results according to Indian GAAP for the quarter and financial year ended June 30, 2010.
Financial highlights for the quarter ended June 30, 2010
Business highlights for the quarter ended June 30, 2010
N Chandrasekaran, chief executive officer and managing director, said: “This has been a quarter of complete outperformance. Our balanced growth was driven by disciplined execution and strong demand across markets and industry sectors. Our holistic growth across service lines highlights the growing traction among corporations for TCS’ full services strategy.” He added: “While we remain alert about changing macro dynamics in many markets, our customer-centric business model is very relevant and helps us participate in the ongoing recovery.”
S Mahalingam, chief financial officer and executive director, said: “The structural strength of our business model has been highlighted during this quarter. Our ability to execute in an optimal fashion through continuing offshore shift and disciplined pricing have mitigated the impact caused by wage and currency headwinds and helped us post a strong margin performance. Our investments in building an extensive front office presence in new markets is helping support and sustain higher growth.”
All industry sectors made good contribution to the company’s growth. In terms of service lines, there was balanced growth across IT and other new service lines like BPO, infrastructure services and assurance. In terms of markets, North America and Asia led the momentum for growth, and all other markets grew in constant currency terms.
Innovation and intellectual property:
During the quarter April to June, the company filed 26 patent applications and was granted one in the area of object-oriented models. Till date, the company has applied for 323 patents and has been granted 61 patents.
Global Network Delivery ModelTM
The company continued to scale up its Global Network Delivery ModelTM (GNDM). Offshore revenues were at 51.2 per cent, up 20 basis points from Q4, while revenues from non-Indian GNDM centres were at 5.2 per cent.
The company’s portfolio of financial products under the umbrella brand of TCS BANCS continued to gain traction in the global financial services industry. The company won 13 engagements in core banking, capital markets and insurance segments across markets in China, India, the US, the UK and Europe. In addition, eight TCS BANCS installations went live during the quarter.
Utilisation in Q1 FY2011 was 82.6 per cent (excluding trainees) and 74.8 per cent (including trainees). The attrition rate in Q1 for IT services was 12.3 per cent (LTM), BPO: 20.0 per cent (LTM) while overall attrition was at 13.1 per cent. At the end of Q1, the total employee strength of the company was 163,700. Foreign nationals formed 7.2 per cent of the total employee base and 31 per cent were women.
“We have decided to increase the hiring target for FY2011 to 40,000, an increase of 10,000 from the previous estimate given the strong deal momentum and continuing ramp ups. We continue to focus on retention and providing an enriching employee experience,” said Ajoy Mukherjee, vice president, head, global human resources.
Awards and recognition
TCS was ranked at number five in Bloomberg Businessweek Tech 100, a ranking of the world's best performing tech companies, and topped the list for IT services. The company won the SAP® Pinnacle Award in the 'global partner service innovator' category for enhancing the customer experience, addressing critical issues such as accelerating co-innovation and improving return on investment. The FE-EVI Green Business Survey and Leadership Awards 2009-10 recognised Tata Consultancy Services as one of the top 'green business leaders' in the IT / ITeS sector.
Along with its customer Hua Xia Bank of China, TCS has won The Asian Banker’s prestigious best core banking IT implementation award. Globally, the company was ranked the number one IT services firm in the Nordic region in EquaTerra’s Nordics Service Provider Performance Study 2010 and recognised as one of the top three consulting companies in Belgium by Data News. The company was awarded the Top Employers ICT Netherlands certification from CRF Institute, an independent, internationally operating institute, in recognition of its high-quality human resources practices.