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Last updated: 27 Sep, 2014  

TCS revenues surge in Q2 driven by highest volume growth

PR Newswire | 15 Oct, 2013
Revenues surge in Q2 driven by highest volume growth in last nine quarters

MUMBAI, India: Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS US Dollars for the quarter ended September 30, 2013.

Financial Highlights for Quarter Ended September 30, 2013

  • Operating Profit at $1,007 million up 31.9% Y-o-Y

Business Highlights for Quarter Ended September 30, 2013

  • Gross employee addition: 17,362
  • Total headcount: 285,250
  • Utilization: 83.4% (excluding trainees) & 75.0% (including trainees)
  • Number of $100+ million clients increased to 22 from 19

Commenting on the Q2 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "It has been another great quarter. We have demonstrated all-round strong growth across markets and industries, highlighted by efficient and rigorous execution. Our ongoing investments in industry-led solutions and our efforts to provide insights and articulate the relevance of the digital revolution to business is helping us gain mindshare with customers and differentiate the TCS brand in the market."

Mr Chandrasekaran added: "We continue to see a robust demand pipeline across markets and a unique opportunity to strategically partner and participate with clients as they reimagine their future in multiple dimensions."

Rajesh Gopinathan, Chief Financial Officer, said: "Strong volumes, currency tailwinds and firm execution helped us post industry-leading operating margins in this quarter. Our ability to manage operations with a degree of discipline has helped maintain the tempo of investments needed to sustain growth as well as provide superior shareholder returns."

Growth in Q2 was broad-based with all industries contributing to this holistic performance. Growth was led by Life Sciences, Media, Energy & Utilities and BFSI (Banking, Financial Services and Insurance). All core markets grew smartly with Europe, North America and UK leading the pack. There was balanced growth across IT and other service lines led by Asset Leverage Solutions, Assurance, Enterprise Solutions, Engineering Services and Infrastructure.

Select Key Wins

  • Chosen by a global financial institution for a multi-year contract to provide assurance services to certify the roll out of their applications globally
  • Awarded a multi-million dollar engagement by a large North American pharma company to provide end to end managed services for its data centers worldwide
  • Won a multi-year multi-million contract to sustain and transform the customer services systems and processes for a major utility in North America
  • Awarded a global engagement to manage the core applications across multiple key process areas, including supply chain and sales for a global telecommunications major
  • Awarded a multi-year, multi-million support services deal for a global professional services company
  • Selected by a large global universal bank as strategic partner to provide application development and maintenance services globally
  • Awarded an end to end managed infrastructure services deal including service integration for a global beverages firm
  • Selected by a leading telecom provider in South Africa to provide multi-year transformation and managed services on an ERP platform

Key Wins in Digital Services and Solutions

  • Engaged by a leading engine manufacturer in North America to implement their telematics platform using Big Data technologies on the Cloud
  • Won a multi-year engagement with a leading Hi-Tech company to implement and manage marketing analytics systems using Big Data platforms
  • Won an engagement from a major North American pharmaceutical company to build a hosted clinical data platform for analytics
  • Selected by one of the largest banks in Africa to establish a Master Data Management strategy to create a 360-degree view of their customers
  • Selected by a global aerospace corporation to establish their master data management strategy
  • Won an engagement with a major multi-channel operator in North America to establish the data quality framework for their enterprise data
  • Won an engagement with a leading global banking and financial services company based in Europe to establish a financial information hub using Big Data technologies
  • Selected by a leading global engineering, electrical equipment and electronics company based in Asia Pacific to improve their master data assets
  • An Indian retailer has selected a Cloud-based deployment of TCS Hy5 Presidio™ Mobile Device Management product for managing their fleet of company owned Android devices
  • A leading North American pharmaceutical services company has selected TCS Event Maestro™ product for event management on all major mobile platforms
  • A North American insurance company has selected TCS GoSafe™, a smartphone based telematics product that helps promote safe driving habits and enables better risk management
  • An Indian insurance provider has selected TCS iAgent™ mobile solution for their agents
  • A global airline based in Asia Pacific has selected TCS to develop a cabin crew service digitization platform using mobiles
  • A global Insurance company based in North America has selected TCS to develop a multiplatform tablet solution for their field agents
  • A global bank based in Europe has selected TCS to build a multi-country mobile application for their personal and business clients globally
  • A large regional bank in North America has selected TCS as a strategic partner for mobile application development services
  • A global Consumer Products Goods company in North America has selected TCS as a key partner for their mobile application factory to bring digital transformation to business process in Manufacturing, Engineering and across the Supply Chain globally
  • A global Semiconductor equipment manufacturer based in Europe has selected TCS to develop a multi-platform field force application to transform field agent work order business process with contextual services

Key Wins in Products/Platforms:

  • Awarded engagement by a large bank in the Middle East for a core system upgrade and transforming the bank to be the Best Digital Bank
  • Selected by a leading bank in Latin America for TCS BaNCS corporate actions solution and contract discussions are in-progress.
  • Selected by a leading regional bank in Asia Pacific to implement TCS BaNCS core banking platform.
  • A leading African bank has adopted TCS BaNCS Channels Software for wholesale and custody clients
  • Two European clearing houses have selected TCS BaNCS Market Infrastructure platform

Innovation and Intellectual Property:

  • As of September 30, 2013, the company has applied for 1441 patents including 101 applied during the quarter. To date, the company has been granted 98 patents.

Human Resources:
The company continued to hire to support business growth. There was a total gross addition of 17,362 people (net addition of 7,664 employees) taking the total employee strength of 285,250 employees on a consolidated basis. The utilization rate (excluding trainees) was at 83.4% and that including trainees was 75%. The attrition rate (LTM) was stable at 10.9 per cent including BPO. The attrition rate in IT was at 9.9 per cent, while BPO attrition was higher at 16.3 per cent.

During the quarter, TCS also announced an eight-year title sponsorship of the New York Marathon as part of a premier partnership with New York Road Runners, which include support for year-round community programs and key heritage races in the five boroughs. The TCS New York Marathon will start from 2014.

"Our industry leadership status and pro-active employee engagement programs have helped us sustain our best-in-class rates for retention and utilization. What is encouraging is that we have been able to push the utilization rates including trainees further in this quarter," said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.

Awards and Recognition:
Business Leadership:

  • India's Most Respected Company – Business World
  • Ranked in Top 50 on 2013 Information Week 500 – a list of the top US technology innovators
  • One of the World's Most Innovative Companies – Forbes
  • 'Best Performing IT Vendor of the Year' Award – Singapore Airlines
  • Ranked No.1 for customer satisfaction in the UK – Whitelane Research survey
  • Multiple awards at the Asia's Best Employer Brand Awards 2013
    • BPO Organisation of the Year
    • Operational Excellence & Quality in the BPO Industry
    • Talent Management, Excellence in HR through Technology
    • Best HR Strategy in Line With Business
    • Innovation in Recruitment and Excellence in Training
  • Named 2013 Top 10 Global Service Provider in China
  • Certified as Top Employer in South Africa -Top Employers Institute
  • 'Highly Commended' in the 'Citi International Award' – "Business in the Community Responsible Business Awards 2013"


  • Assurance Services Unit awarded 'COE of the year' – HP
  • 'Technology Partner' - Manufacturing Leadership 100 Awards by Manufacturing Leadership Community
  • eIndia Governance Award for TCS Passport Seva Project & APOnline's MeeSeva
  • Partner Excellence Award – Pegasystems, Inc
  • Cloud Partner of the Year Award' –NetApp
  • 'Microsoft IT –Innovator of the Year' - Microsoft


  • Excellence in Energy Management – CII
  • Special award for Green building initiatives – Confederation of Indian Industry (CII)
  • Made it to Global 500 Carbon Performance Leadership Index 2013
  • Recognised Among Global Leaders in 2013 – Dow Jones Sustainability World Index
  • Multiple awards at Singapore HR Awards 2013 – Singapore Human Resources Institute (SHRI)
  • Gold Award in the 'Best Mobile Learning Program' - TISS-LeapVault CLO Awards


  • N Chandrasekaran, CEO was:
    • Named Best CEO in the Institutional Investor's 2013 Annual All-Asia Executive Team Rankings
    • Was conferred Honorary Doctorate from Nyenrode Business Universiteit, Netherland's top private business school.
    • Conferred the Honorary Doctor of Science Degree (Honoris Causa) by the KIIT University


Unaudited Condensed Consolidated Statements of Comprehensive Income
for the quarter ended September 30, 2013, June 30, 2013 and September 30, 2012
(In millions of USD, except per share data)

Quarter ended
September 30, 2013

Quarter ended

June 30, 2013

Quarter ended
September 30, 2012





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 Earnings per share in USD






Unaudited Condensed Consolidated Statements of Financial Position
as at September 30, 2013 and March 31, 2013
(In millions of USD)

As at September 30, 2013

As at March 31, 2013


 Property and equipment



 Intangible assets and Goodwill



 Accounts Receivable



 Unbilled Revenues






 Cash and Cash equivalents



 Other current assets



 Other non current assets



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Liabilities and Shareholders' Equity

 Shareholders' Funds



 Redeemable Preference Shares



 Long term borrowings



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 Other current liabilities



 Other non-current liabilities



 Minority Interest



 Total Liabilities




About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognised as the benchmark of excellence in software development. A part of the Tata group, India's largest industrial conglomerate, TCS has over 285,000 of the world's best-trained consultants in 44 countries. The company generated consolidated revenues of US $11.6 billion for year ended March 31, 2013 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at

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SOURCE Tata Consultancy Services

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