Strong Order Book and Double Digit Growth Mark Stand-Out Year for TCS

Strong Order Book and Double Digit Growth Mark Stand-Out Year for TCS

Tata Consultancy Services, the leading IT services, consulting and business solutions firm reported its consolidated financial results according to Ind AS and IFRS, for the quarter and the financial year ended as on March 31, 2019.

Annual Highlights for 2018-19 Q4 FY 2019 Highlights
  • Digital Revenue: 28.6% of Rev, +50.6% YoY in CC
  • Robust Client Additions:

$100M+ band: 44 (+6 YoY)
$50M+ band: 99 (+2 YoY)
$20M+ band: 215 (+8 YoY)
$10M+ band: 371 (+21 YoY)
$5M+ band: 532 (+37 YoY)
$1M+ band: 1008 (+45 YoY)

  • Employee Metrics:
    • Net addition: 29,287 employees (FY 18: 7,775)
    • Employee headcount: 424,285
    • LTM IT Services Attrition: 11.3%
  • Cash Conversion: Operating Cash Flow 100.6% of Net Income.
  • Over $ 3,863 Mn of cash returned to shareholders in dividends and buyback
  • FY 19 EPS at $1.19, up 14.0% YoY
  • Revenue of $5.4 Bn+8.5% YoY (+12.7% YoY and +2.4% QoQ in CC)
  • Digital Revenue: 31% of Rev, +46.4% YoY in CC
  • Operating Margin: 25.1%, -31 bps YoY
  • Net Margin: 21.4%-15 bps YoY
  • Net Addition: 6,356 employees
  • Final Dividend per share (proposed) of Rs 18.00

Commenting on the Q4 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said, “This is the strongest revenue growth that we have had in the last fifteen quarters. Our order book is bigger than in the prior three quarters, and the deal pipeline is also robust. Despite macro uncertainties ahead, our strong exit positions us very well for the new fiscal.”

He added, Our full spectrum digital transformation capabilities and thought leadership is what is driving the strong demand for our services, and making us the preferred innovation and transformation partner to our customers. Our Business 4.0™ framework has now become the de facto model for enterprises looking to embrace new technology-enabled business models, pursue new revenue streams or deliver superior customer experiences.”

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said,“It is a very satisfying finish to a year marked by steady growth acceleration and order book expansion every quarter. The expanding scale and scope of our cognitive business operations engagements have been central to our growth. Our Machine First™ approach and location-independent Agile methods are helping our customers reimagine their processes and underlying systems, participate in ecosystems and transform themselves into Business 4.0 organizations.”

V Ramakrishnan, Chief Financial Officer, said, “Double digit growth, higher quality of the incremental business, and best-in-class execution capabilities have helped us expand our operating margin year on year. Our foresight in investing very early on in building digital skills and transformational capabilities has not only gained us market share, but has also resulted in our very resilient, industry-leading margin today.

IFRS Financial Statements

Consolidated Statements of Comprehensive Income

For the Year ended March 31, 2018, and March 31, 2019

(In millions of $, except per share data)

 

 

Year ended

 March 31, 2018

Year ended

 March 31, 2019

 Revenue 19,089 20,913
 Cost of revenue 11,054 12,160
 Gross margin 8,035 8,753
 SG & A expenses 3,305 3,406
 Operating income 4,730 5,347
 Other income (expense), net 557 589
 Income before income taxes 5,287 5,936
 Income taxes 1,273 1,428
 Income after income taxes 4,014 4,508
 Minority interest 9 14
 Net income 4,005 4,494
 Earnings per share in $ 1.04 1.19

 

Consolidated Statements of Comprehensive Income

For the three-month periods ended March 31, 2018, and March 31, 2019

(In millions of $, except per share data)

 

 

Three-month period ended

 March 31, 2018

Three-month period ended

 March 31, 2019

 Revenue 4,972 5,397
 Cost of revenue 2,871 3,144
 Gross margin 2,101 2,253
 SG & A expenses 838 899
 Operating income 1,263 1,354
 Other income (expense), net 152 165
 Income before income taxes 1,415 1,519
 Income taxes 342 362
 Income after income taxes 1,073 1,157
 Minority interest 3 3
 Net income 1,070 1,154
 Earnings per share in $ 0.28 0.31

Other Operating expenses for the period Q4 FY2019 includes a contribution of Rupees 220 Crore to an electoral trust

Consolidated Statements of Financial Position

As of March 31, 2018, and March 31, 2019

(In millions of $)

  As of March 31, 2018 As of March 31, 2019
Assets
 Property and equipment 1,784 1,685
 Intangible assets and Goodwill 599 581
 Accounts Receivable 3,849 3,969
 Unbilled Revenues 1,063 1,298
 Investments 5,536 4,243
 Cash and Cash equivalents 751 1,045
 Other current assets 1,385 2,908
 Other non-current assets 1,702 1,207
Total Assets 16,669 16,936
 Shareholders’ Funds 13,413 13,243
 Long term borrowings 8 6
 Short term borrowings 30 3
 Other current liabilities 2,712 3,192
 Other non-current liabilities 443 423
 Minority Interest 63 69
 Total Liabilities 16,669 16,936