BackTCS Q1 results: Net profit rises nearly 11%, here are five key takeaways
TCS numbers were helped by by a strong performance in its key BFSI segmentThe company had a net employee addition of 12,356 employees- its highest in five years, taking the total headcount to 436,641 people
PremiumTata Consultancy Services Ltd , India's biggest software services company, reported a 10.8% rise in its first-quarter profit on Tuesday at ₹8,131 crore. Here are five key takeaways from the results that were announced.
1) BFSI boost: TCS numbers were helped by by a strong performance in its key banking, financial services and insurance segment. The Mumbai-headquartered company said it earned 11.2% more in revenue from its BFSI clients compared to a year earlier. That helped TCS boost its net profit with nearly 11% increase from ₹7,340 crore a year earlier.
"Our margins this quarter fully reflect the annual increments that we effected across the board in April," TCS Chief Financial Officer V Ramakrishnan company said in a statement.
"We have had a steady start to the new fiscal year. We see customers continuing to spend on their growth and transformation initiatives, and that is showing in our strong order book and deal pipeline this quarter," TCS CEO and Managing Director Rajesh Gopinathan said.
2) Strong hiring: The company had a net employee addition of 12,356 employees- its highest in five years, taking the total headcount to 436,641 people. With continuing initiatives to attract the best local talent across major markets, the workforce is becoming more diverse. The percentage of women in the workforce rose further to 36.1%, while the total number of nationalities represented grew to 149.
3) EPS rises: The Earnings Per Share (EPS) was at ₹21.67, up 13% year-on-year. "Sustained rigour in operations helped deliver strong cash conversion and EPS expansion," Ramakrishnan said. The Board has recommended a dividend of ₹5 per equity share for the June quarter.
4) Broad revenue growth: Revenue growth was broad-based across verticals during the quarter ended June 2019. Lifesciences and healthcare led the pack, growing 18.1%. The other verticals — BFSI grew 9.2%, retail & consumer packaged goods grew 7.9%, communications and media grew 8.4%, technology and Services increased 7.8% and manufacturing rose 5.5%) – all showed industry-leading growth rates. Revenue of the Mumbai-based firm grew 11.4% to ₹38,172 crore in the June 2019 quarter, compared to ₹34,261 crore in the same quarter of 2018-19, it added.
5) Multiple foreign orders: Digital revenue accounted for 32.2% of the topline, growing 42.1% in the said quarter over the previous year. The company added four customers in the $100 million or more category in April-June quarter. The company's focus on artificial intelligence helped it bag major deals across the globe. TCS was selected by a large European bank as a strategic partner for operating model transformation across application development, application management and infrastructure services. The company was engaged by a major US airline as a strategic partner for a multi-year engagement to provide application management & quality assurance services. TCS has also been engaged by a major Australian telecommunications company to deliver greater efficiency and improve net promoter score using a TCS-built digital twin, supported by cognitive and AI-enabled automation interventions. TCS has also been selected by a large airline group in South America to transform customer experience on its omni-channel digital commerce platforms, with TCS Interactive design, implementation and maintenance services.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
