TCS Q1 result: Net profit soars to Rs 7,340 cr; key takeaways
Tata Consultancy Services (TCS), the country's largest software exporter, declared its first quarterly results, ended June 30, 2018, of the fiscal today.
Tata Consultancy Services (TCS), the country's largest software exporter, declared its first quarterly results, ended June 30, 2018, of the fiscal today. It posted a 23.4 percent rise in consolidated net profit to Rs 7,340 crore. TCS, a Tata group company, saw its income from operations grow at 15.8 percent to Rs 34,261 crore in the first quarter of FY19, up from Rs 29,584 crore a year ago. Here are the 5 key takeaways
The company said in a statement on Tuesday that the record quarterly profit was boosted by massive growth in its Banking, Financial Services and Insurance (BFSI) division. In April, TCS had said it expected a rebound in spending by its key BFSI clients in North America in the financial year to 2019. North America is its biggest market. TCS revenue from its BFSI business rose to Rs 134.64 billion rupees ($1.96 billion) from Rs 117.89 billion.
Consulting and Services Integration
• Chosen as a strategic partner for the transformation of Mitsubishi Corporation’s global network architecture, an initiative to enhance operational efficiencies and business excellence, spanning multiple geographies and approximately 150 offices worldwide.
• Selected by a leading UK retailer as a strategic partner to digitally transform operations and drive greater business agility, by implementing a portal leveraging a suite of micro services and optimizing their supplier network through a new Supplier Master Data Management solution.
• Expanded the partnership with M&G Prudential to deliver enhanced services for its UK savings and retirement customers, bringing the total number of policies managed by TCS to 5.8 million.
• Chosen by a leading American aviation company in the US to improve its operations by leveraging the power of Analytics, as part of an IoT Digital Thread and Digital Command Center initiative to overcome silos and provide an integrated business view across multiple business units.
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• Selected by Euroclear Finland, the financial industry’s trusted provider of post trade services, to transform and modernize its core legacy systems by deploying TCS BaNCS and significantly upgrading its issuance and post trade services.
• Engaged by a prominent North American airline as a strategic partner to enrich its customer experience by designing and building advanced analytics labs and a security infrastructure for effective security configuration and improved performance.
• Chosen by a leading Canadian financial institution as a leading digital partner to improve its employee experience by reimagining their workplace management and collaboration processes.
• Selected by an American multinational shipping and logistics company as a strategic partner to design and develop a next generation digital network planning tool to optimize service across their product lines.
Enterprise Applications, Cloud Services and Security
• Engaged by a global gas supplier as the transformation partner for a large multi-year hybrid cloud engagement, including hosting and managing their IT infrastructure leveraging TCS Private Cloud.
• Chosen by a European steel manufacturer to provide improved visibility and control of their cloud applications by implementing a Cloud Access Secure Broker solution with GDPR compliance.
• Selected by a leading UK airline to deliver a smart order management solution and superior digital shopping channel experiences by implementing an Azure Cloud based solution.
• Engaged by a travel and logistics company in the US to create a new Digital Workplace through a design-centred transformation initiative leveraging Office 365 and SharePoint.
Automation and Blockchain
• Engaged by Keysight, an American electronics test and measurement equipment manufacturer, to transform their IT landscape using Intelligent Automation and our Machine First Delivery Model, leveraging ignioTM – the world’s first cognitive automation solution for enterprise IT – as a key differentiator.
• Selected as a strategic partner by Woolworths Group, a leading Australian retailer, to enable business operational excellence and efficiency by leveraging TCS' contextual knowledge and intelligent automation solutions.
• Chosen by a multinational aerospace and transportation company to drive greater efficiency across their value chain by deploying intelligent automation solutions.
• Engaged by a leading Canadian bank to improve the transparency of its customer information by implementing a Blockchain solution to synchronize client insights across multiple businesses.
IoT and Analytics
• Engaged by a prominent bank in the US to empower its financial crime group with cognitive intelligence and anti-money laundering processes by integrating the bank’s Analytics platform with an advanced search engine tool.
• Selected by a leading aircraft manufacturing firm in the US to transform its data landscape in line with its Enterprise Strategy for 2025 – by enabling advanced analytics, integration of machine data and cloud migration.
• Chosen by a top British Port group to provide operational visibility and establish safety compliance by effectively tracking field assets, leveraging IoT enabled sensing technology.
Products and Platforms:
· TCS’ products and platforms continued to gain traction in the market place with 8 wins for the TCS BaNCS suite, 2 wins for Advanced Drug Discovery platform, and 7 wins for ignio
Research and Innovation:
· TCS’ flagship innovation event, the TCS Innovation Forum 2018 was held at four locations – New York, Mexico City, London and Edinburgh. Hundreds of customers, ecosystem partners and influencers got together with TCS’ Research and Innovation teams to brainstorm around the theme of "Innovation driven Business 4.0"
· At the 13th edition of TATA Innovista 2018 the TCS team won five distinct awards across multiple award categories
· TCS Research won the first place for Best modeling results predicting the microstructure within an as-built 15-5 bridge structure at the AM-Bench 2018 Benchmark Challenge conducted by the National Institute of Standards and Technology (NIST), USA.
As of June 30, 2018, the company has applied for 3978 patents, including 62 applied during the quarter, and has been granted 715 patents
Total employee strength at the end of Q1 crossed the 400k mark and stood at 400,875 on a consolidated basis. The percentage of women in the workforce rose further to 35.6%, while the total number of nationalities represented grew to 143.
The company’s strategy of organic talent development resulted in a cumulative 11 million learning hours, and training of over 264k employees in digital technologies, and over 242k employees in Agile methods. The IT Services attrition rate (LTM) fell further by 0.1% in Q1 to 10.9%, while the total attrition rate (including BPS) fell to 11.7%.
“We continue with our investments in upgrading the technology skills of our people, while leveraging their contextual knowledge and domain experience. This has resulted in not only a very nurturing and dynamic work environment, but also a strong digital solutioning capability that delivers differentiated outcomes for our customers,” said Ajoy Mukherjee, Executive Vice President and Global Head, Human Resources.