Broad-based Demand, Resilient Margins Power Strong Earnings Growth in Q2 for TCS
Revenue at $6.333 Bn | Growth of +16.8% YoY; +15.5% in CC
All Verticals Grow 15%+ YoY; BFSI crosses $2 Bn in Qtrly Rev Run Rate
North America Grows 17.4% YoY CC
Industry-Leading Operating Margin Expands to 25.6%
Net Income at $1.301 Bn | Growth of +14.0% YoY | Net Margin at 20.5%
Client Metrics Show Healthy Growth Across Every Revenue Band
MUMBAI, INDIA--(Business Wire / Korea Newswire) October 12, 2021 -- Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading global IT services, consulting and business solutions organization, reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending September 30, 2021.
Highlights of the Quarter Ended September 30, 2021
Revenue at $6.333 Bn, +16.8% YoY; +15.5% CC YoY
Operating Margin at 25.6%; +0.1% QoQ, -0.6% YoY
Net Income at $1.301 Bn, +14.0% YoY | Net Margin at 20.5%
Strong Client Addition: 5 New Clients (total: 54) in $100Mn+; 17 new clients (total: 114) in $50Mn+
Net Cash from Operations at $1.344 Bn ie 103.3% of Net Income
Net headcount addition of 19,690 | Workforce strength: 528,748
Diverse and inclusive: Women in the workforce: 36.2% | 157 Nationalities
Building a G&T workforce: 417K+ employees trained in new technologies | 26K+ Contextual Masters identified | 6,900+ Elevate graduates
Best in class talent retention: LTM IT Services attrition rate at 11.9%; lowest in the industry
Dividend per share: INR 7.00 | Record date 19/10/2021 | Payment date 03/11/2021
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “The strong and sustained demand environment is a once-in-a-decade opportunity to position ourselves as the preferred growth and transformation partner for our customers. We are using the growth tailwind to invest in strengthening relevant capabilities and building out a comprehensive portfolio of offerings that caters to a broader set of stakeholders in the enterprise across business cycles, strengthening our brand, and making our business more resilient. We believe this is the most sustainable pathway to create longer term value for all our stakeholders.”
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: “We are pleased with our overall delivery performance during the quarter, where several large complex programs across verticals went live, thanks to the passion, energy, and commitment of our people. These include programs such as contact-less payments, card-less withdrawal of cash from ATMs for leading banks, space-range-display transformation for retailers, one of the largest application transformations to public cloud native architecture, all leveraging our automation led G+T framework, agile methods and toolkit. Our products and platforms, TCS BaNCS®, Quartz SmartLedgers™, TwinX™ and TCS Cognix™, all had marquee wins during the quarter and are increasingly driving business and operating model transformations in many markets.”
Samir Seksaria, Chief Financial Officer, said: “Strong growth and disciplined execution helped us overcome headwinds from currency and supply-side inflation and deliver expanded margins. Our industry-leading profitability and strong cash conversion give us the wherewithal to make the right investments needed to build out the business of the future.”
Research and Innovation
As on September 30, 2021, the company has applied for 6,169 patents, including 180 applied during the quarter, and has been granted 2,100 patents.
The company’s ability to attract and retain talent at scale, and its continued investments in organic talent development, have enabled it to fulfill much of the incremental demand in newer technologies using internal candidates. Employees logged over 14.3 million learning hours in Q2. Over 496,000 employees have been trained in Agile methods and over 417,000 employees have been trained on multiple new technologies.
TCS added 19,690 employees on a net basis in Q2, taking the total employee base to 528,748 as of September 30. It continues to be a very diverse workforce, comprising 157 nationalities and with women making up 36.2% of the base.
TCS’ philosophy of investing in people and its progressive workplace policies have resulted in industry-leading talent retention. IT Services attrition rate (LTM) was at 11.9%, the lowest in the industry.
“This has been a fulfilling quarter in more ways than one. We brought on board a record number of 43,000 fresh graduates in the last six months. Our Shift-Left training strategy has helped us significantly accelerate their deployment. Investing ahead of time in building our own pipeline of talent has helped us overcome supply-side challenges, and meet the execution timelines of our customers’ growth and transformation programs. By focusing on organic talent development and by linking learning with careers, we have kept employee satisfaction levels high. At the same time, we continue to scale up programs like Contextual Masters and Elevate to groom the G&T leaders for the workforce of tomorrow,” said Milind Lakkad, Chief HR Officer. “With 70% of TCSers fully vaccinated, and over 95% having received at least one dose, we plan to gradually get our workforce back in office by the end of this year.”
IFRS Financial Statements
(To view the table, please visit https://bwnews.pr/2YDEDNy)
About Tata Consultancy Services
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile™ delivery model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India‘s largest multinational business group, TCS has over 528,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $22.2 billion in the fiscal year ended March 31, 2021 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS’ proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit www.tcs.com.
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This is a news release distributed by Korea Newswire on behalf of this company.