Tata Consultancy Services (TCS), the largest Indian IT firm by sales on Tuesday reported a 23.5 per cent rise year-on-year in its consolidated net profit at Rs 73.62 billion for the first quarter of FY19 which ended June 2018.
Total revenues of the firm increased 15.8 per cent to Rs 342.61 billion in Q1 of FY19 against the same period of previous fiscal. Revenues grew 6.8 per cent sequentially.
Operating margin of the IT firm remained healthy at 25.04 per cent during this quarter. The all-round performance of the TCS was supplemented by sound growth reported by the BFSI (banking, financial services and insurance) vertical which rose 4.1 per cent on year-on-year basis.
Its digital revenue constituted 25 per cent of the total revenue, which was higher 44.8 per cent over the same period of previous fiscal, and showed three consecutive quarters of growth in upward of 35 per cent.
"We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders. Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum. With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future," said Rajesh Gopinathan, CEO and MD of TCS said.
"Customers across verticals and markets are embracing our Business 4.0 thought leadership framework and accelerating their digital transformation journeys," he added.
The company added two clients in the $100 million plus revenue category which took the total number of clients in this bracket to 40 as against 38 in the previous quarter.
Highlights of the Press Conference:
“We are always open for acquisitions in products or offerings and we will keep evaluating it”- N. Ganapathy Subramaniam, COO and Executive Director, TCS
"Use of automation to drive efficiency and easier regulatory compliance, we are seeing banks expand regionally and horizontally" - Rajesh Gopinathan, CEO & MD, TCS
“BFSI demand is coming across the board, whether it is reimagining customer experience or customer front end, including wealth management”- Rajesh Gopinathan, CEO & MD, TCS
“Lot of our digital offerings are gaining traction whether it is TCS interactive, block chain, IoT; we have won significant deals”- N. Ganapathy Subramaniam, COO and Executive Director, TCS
"On BFSI, we are quite enthused by the demands we see. Medium term outlook continues to be positive" - Rajesh Gopinathan, CEO & MD, TCS
“Growth has definitely picked up in this quarter” - V. Ramakrishnan, CFO, TCS
"The pipeline of large deals is solid and we continue to focus on digital offerings" - N. Ganapathy Subramaniam, COO and Executive Director, TCS
"We are very focused on getting back well above the double digit growth" - Rajesh Gopinathan, CEO & MD, TCS
BFSI turnaround drives robust start to FY19
“It is a very encouraging quarter for us”- Rajesh Gopinathan, CEO & MD, TCS
“UK we are seeing 18% growth driven by large deals signed, Europe also has seen significant growth”- Rajesh Gopinathan, CEO & MD, TCS
"Energy and resources 30% Y-o-Y" - Rajesh Gopinathan, CEO & MD, TCS
"In UK , we are seeing 18 percent growth" - Rajesh Gopinathan, CEO & MD, TCS
"We have got two new clients in the 100mn+ band, 13 clients added in the 5mn+ band" - Rajesh Gopinathan, CEO & MD, TCS
IT attrition rate at 10.9%- Rajesh Gopinathan, CEO & MD, TCS
"Digital now accounts for 25 % revenue" - Rajesh Gopinathan, CEO & MD, TCS
