TCS Delivers Steady Performance in Q3

Constant currency revenue growth of 0.5% Q-o-Q

International business CC revenue growth of 1.1% Q-o-Q

Digital business growth at 4% Q-o-Q; Contributes 13.7% of revenues
 

Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS for the quarter ended December 31, 2015.

Financial Highlights for Quarter Ended December 31, 2015

• Operating Profit at Rs 7,276 crore;

• Operating Margin at 26.6 %

• Net Profit at Rs  6,110 crore; Growth of 12.2 % Y-o-Y and 0.9 % Q-o-Q

• Dividend per share of  Rs 5.50

• Earnings Per Share at Rs 31.01

Business Highlights for Quarter Ended December 31, 2015

• Gross employee addition 22,118

• Total headcount: 344,691

• Utilization: 84.9% (excluding trainees) & 80.9% (including trainees)

• No of $100m+ clients increases by 1 to 34; No of $20M+ clients increase by 2 to 173

Commenting on the Q3 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: “All our industry segments have exhibited growth in a traditionally weak quarter additionally accentuated by the impact of the Chennai floods. Our international business has grown smartly in CC terms with North America and Europe leading the way among major markets and Latin America among growth markets.”

Mr Chandrasekaran added: “Digital will remain the core focus for enterprise IT in 2016 as our customers respond to competition in a global economy driven by real-time insights. With 13.7% of our revenues coming from Digital business and this segment growing at a higher sequential rate, TCS is playing an impactful role in partnership with customers. “

Rajesh Gopinathan, Chief Financial Officer, said: “In a challenging quarter with significant cross currency and other headwinds, we have operated with rigor and discipline to deliver credible margin performance and generated excellent cash flows. “

Growth in Q3 was holistic with all industry segments showing sequential growth with Life Sciences & Healthcare, Manufacturing and Hi-Tech leading the way. Europe and North America led growth in major markets while Latin America and Asia Pacific led the growth markets. Among service lines, Infrastructure Services and BPS were the leaders.