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Strong Digital Demand, Great Execution Mark Robust Q3Quarterly Net Profit at $1 billion | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mumbai, Maharashtra, 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 and Ind AS as on December 31, 2016.
Financial Highlights for Quarter Ended December 31, 2016
Business Highlights for Quarter Ended December 31, 2016
Commenting on the Q3 performance, CEO and MD, N Chandrasekaran said “The resilience of our business model and strength of our operating strategy has been brought to the fore by our performance in Q3, traditionally a quarter of weak demand. Our strengths in Digital, Platforms and Cloud as well as our deep knowledge of the customers’domain are driving our ability to play a strategic roleand make a holistic impact on the business.”
Mr Chandrasekaran added “To support and sustain our Digital business that is growing at 30% on an annual basis, we continue to build new capabilities in Digital technologies, empower employees to enhance agility in the workplace and invest moreto developIP-based platforms and products. Some of these products and platforms are maturing with greater customer adoption while others continue to be incubated in our Innovation labs. As digital adoption increases in 2017, we are well prepared to lead this change.”
Rajesh Gopinathan, Chief Financial Officer, said “We have shown great discipline and control at all levels to deliver another credible quarter. Alongside a good growth performance, we have been able to keep profitability stable in our desired range anddeliver over $1 billion in free cash flowduring the quarter.”
During Q3, growth was led by Energy & Utilities (up 5.8% sequentially), Hi-Tech (up 2.6% sequentially), BFSI (up 2.1% sequentially), Manufacturing (up 2.1% sequentially) and Retail (up 1.9% sequentially) in constant currency.
From a geography perspective, emerging markets like Latin America and India clocked double digit growth of 12.5% and 10.3% sequentially respectively while North America grew 2.2% sequentially and UK grew 1.7% sequentially.
From a services perspective, strength in growing segments like Platforms, Cloud and Internet of Things is evident from the growth in Asset Leveraged Solutions (up 21% sequentially), Infrastructure services (up 9.5% sequentially) and Engineering and Industrial Services (up 3.1% sequentially).
Select Digital Wins
Select Wins in Q3
Innovation and Intellectual Property As of December 31, 2016, the company has applied for 3161 patents, including 80 applied during the quarter. Till date the company has been granted 440 patents
Human Resources The total employee strength at the end of Q3 was 378,497 on a consolidated basis with gross addition of 18,362 (net addition: 6,978) employees. The total attrition rate (LTM) further fell to 11.3% in IT services and was at 12.2% including BPS. The percentage of women in TCS rose to an all-time high of 34.6%.
“Our efforts and investments to build professionals with the right digital skills continue and now more than 190,000 TCSers are equipped with new capabilities to help our customers with their transformations. We are also happy that our retention rates continue to rise as we remainengaged with our employees to help them succeed in a digital world,” said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources.
Awards and Recognition Business Leadership:
o First Time Top Employer Certifications in Philippines and China and Multi-year Certifications in Australia, India and Singapore
Partner:
o Most Active Partnero Most Innovative Mobile Device Lab deployment for a leading Europe-based telecom providero ‘2016 Digital Innovator of the Year’
Sustainability: Won 'Project of the Year – Contribution to Community' at PMI India Awards 2016
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, BPS, infrastructure, engineering and assurance services. This is delivered through its unique Global Network Delivery Model™, recognized as the benchmark of excellence in software development. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 378,000 of the world’s best-trained consultants in 45 countries. The company generated consolidated revenues of US $16.5 billion for year ended March 31, 2016 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India.
For more information, please visit us at www.tcs.com | @TCS
IFRS Financial Statements
Unaudited Condensed Consolidated Statements of Comprehensive Income For the three-month periods ended December 31, 2015, September 30, 2016 and December 31, 2016 (In millions of Rs, except per share data)
Unaudited Condensed Consolidated Statements of Financial Position As of March 31, 2016 and December 31, 2016 (In millions of Rs)
Ind AS Financial Statements
Consolidated Statement of Profit and Loss For the Quarter ended December 31, 2015, September 30, 2016 and December 31, 2016 (In crores of Rs, except per share data)
Consolidated Balance Sheet As at March 31, 2016and December 31, 2016 (In crores of Rs)
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