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Tata Consultancy Services Posts First Quarter Financial Results [Professional Services Close - Up](Professional Services Close - Up Via Acquire Media NewsEdge) Tata Consultancy Services reported its consolidated financial results according to IFRS for the quarter ended June 30. According to its release on July 15, the company noted the financial highlights for quarter ended June 30, -Operating Income* at $ 972 million; Growth of 13.5 percent Y-o- Y and (4.8 percent) Q-o-Q -Operating Margin at 26.3 percent -Earnings Per Share at $ 0.43 Business Highlights for Quarter Ended June 30, -Gross Addition 15,817 Employees & Net Additions 4,967 Employees -All time High Utilization rates at 85.3 percent (excluding trainees) -Five new $50+ million clients added Commenting on the Q1 performance, Chief Executive Officer and Managing Director, N Chandrasekaran said: "Robust volumes and healthy growth across all industries and key markets helped TCS start the new financial year on a strong note as our broad-based business portfolio continues to deliver results. We have a strong demand pipeline in place and our customer-centric mindset, leadership in the 'Digital' space and strong execution capabilities will help us to sustain our momentum." Mr Chandrasekaran added: "On the occasion of the 10th anniversary of TCS' IPO, the board of directors has announced a special dividend of Rs 40 per share." Rajesh Gopinathan, Chief Financial Officer, said: "Our disciplined stance in operations helped us mitigate the impact of multiple headwinds like currency movements, accelerated depreciation norms and wage hikes during the quarter. Looking ahead, we will continue to maintain our operating margins in our desired band by operating efficiently." During Q1, TCS posted the highest incremental revenue of $191 million in the last 15 quarters driven by holistic growth across markets led by North America. Asia-Pacific, India, United Kingdom, Europe all continued to grow. Growth was seen across all industry segments led by Media & Information Services, Life Sciences, Retail, Telecom with all non-BFS verticals growing in excess of five percent sequentially. Innovation and Intellectual Property: As of June 30, the company has applied for 1804 patents including 58 applied during the quarter. Till date, the company has been granted 129 patents. Human Resources: Gross Additions 15,817 & Net Additions 4,967The company continued to drive employee productivity to support business growth. The total employee strength at the end of Q1 was 305,431 on a consolidated basis. The utilization rate (excluding trainees) was at an all-time high of 85.3 percent and that including trainees was 79.8 percent. The attrition rate was seasonally higher at 12.0 percent including BPS. "Our focus on productivity continues to yield results with utilization rates at an all-time high of over 85 per cent. We have already started on-boarding the campus trainees this year with 2,500 joining in June," said Ajoy Mukherjee, Executive vice president and Global Head, Human Resources. Tata Consultancy Services is an IT services, consulting and business solutions organization. More information: www.tcs.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |