Tata Consultancy Services, the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS for the quarter ended June 30, 2015.
TCS profits for the first quarter FY 2016 up 48.0% Q-o-Q& 12.9% Y-o-Y to Rs 5,709 Crore. Operating margin of the company is at 26.3 %. Operating income of the company has shown a growth of 16.1% Y-O-Y and 70.3% Q-O-Q at INR 6748. TCS has proposed a dividend of Rs 5.5 per share.
The total employee strength at the end of Q1 was 324,935 on a consolidated basis with gross addition of 20,302 associates (net addition: 5,279 employees).
The utilization rate (excluding trainees) was at a high of 86.3% and that including trainees was 82.9%.The attrition rate (LTM) was seasonally higher at 15.9% including BPS.
The percentage of women in TCS rose to an all-time high of 33.5% while the number of nationalities increased to 124.
During Q1, TCS posted the incremental revenues of $136 million driven by strong growth across core markets led by North America, UK, Europe, MEA and Asia-Pacific.
Growth among industry segments was led by Retail, Life Sciences, BFSI and Telecom. Asset-Leveraged solutions led the growth among service lines followed by Infrastructure, Assurance and BPS.
Commenting on the Q1 performance, CEO and MD, N Chandrasekaran said: “Demand from our core markets like North America and greater traction for ‘Digital’ solutions in key verticals like Financial Services, Retail and Life-Sciences has driven volumes and growth in Q1. Our significant investments in IP and platforms, digital capabilities and our execution track record gives us a firm foundation to capture growth in the current financial year.”
Mr Chandrasekaran added: “Given the strong pipeline and market adoption of digital across industries , we are investing to train over 100,000 professionals this year in all relevant technologies.”
Rajesh Gopinathan, Chief Financial Officer, said “Our disciplined approach to all aspect of operations have helped maintain operating margins within our stated range despite hedging volatility and the impact of our annual cycle of salary hikes and promotions. We continue to focus on optimizing our cash conversion ratios and investing in people and technologies ahead of our business needs.”