OREANDA-NEWS. October 18, 2011. Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and  business solutions firm, reported its consolidated financial results according to Indian GAAP for the quarter and half-year ended September 30, 2011.

Financial highlights for the quarter ended September 30, 2011

Operating profits at Rs3,143 crore; growth of 21.4 per cent Y-o-Y and 11.4 per cent Q-o-Q.

Operating margins at 27 per cent, up 89 basis points.

Profit after tax at Rs2,301 crore; growth of 6.1 per cent Y-o-Y and (4.7) per cent Q-o-Q.

Dividend per share of  Rs3.

Earnings per share at Rs11.74.

Business highlights for the quarter ended September 30, 2011

USD 100-million-plus customers up two, to 12; reflects continued traction for full services strategy.

Gross addition of 20,349 employees (net addition of 12,580 employees).

High utilisation rates maintained at 83.1 per cent (excluding trainees).

Thirty-five new clients added; 1010 active clients.

N Chandrasekaran, chief executive officer and managing director, TCS, said: “Our domain-rich solutions and disciplined execution helped us capture business demand across major markets and deliver stellar growth in international revenues. We see strong momentum for our full services strategy from customers who are looking for agility and growth.” He added: “We have created a nimble organisation on the ground to stay close and stay relevant to our customers as there are ambiguities in the external environment in the short term.”

S Mahalingam, chief financial officer and executive director, said: “We continue to make the necessary investments to support our future business growth in different markets as we remain in expansion mode. However, we are also working to optimise our cost structure and keeping a close watch on economic signals.” He added: “Given the breadth of our global operations across 45 countries, the recent unprecedented volatility in the foreign currency markets is fresh cause for concern.”

During Q2, TCS witnessed significant growth across all major markets with North America clocking 9 per cent, the UK growing by over 10 per cent, and continental Europe up over 9 per cent. Among new growth markets APAC, MEA and Latin America grew by 10, 9 and 3 per cent respectively, and revenues from India were down 4 per cent.

There was balanced growth across industries in all markets. Among industry verticals, growth was led by energy and utilities, which grew by 20 per cent, followed by retail, travel and transportation, manufacturing and BFSI which grew at 12, 10, 10, 9 per cent. All service lines grew during the quarter with global consulting growing at 27 per cent, while asset-based solutions grew 20 per cent, followed by engineering, assurance and infrastructure services at 14, 12, 9 per cent, respectively.

Key wins:

A leading global bank has selected TCS BaNCS platform to implement asset servicing for wholesale banking and securities processing for direct custody.

Selected by a large broadband and telecommunications player in Europe and Latin America for service management and integration in a deal valuing over USD 100 million.

TCS BaNCS Insurance product to be implemented across five North Asian countries including China for the life and annuities business for a leading UK-based life assurance company.

Won a platform standardisation deal to consolidate a diverse footprint for a large US-based large insurance company.

Awarded large contract by a US Fortune 500 medical devices company for end-to-end remote infrastructure services.

Selected by a large US-based cable operator and home internet service provider as its strategic partner for its OSS/BSS transformation.

TCS BaNCS portfolio for core banking, fraud monitoring, and domestic and international payments was selected by a leading European financial services provider.

Selected by a global brewing and bottling company as its technology partner to provide infrastructure management services.

Selected by a leading generator and marketer of electricity in North America as a strategic partner for application and infrastructure management.

Innovation and intellectual property:

As of September 30, 2011, the company has applied for 520 patents including 109 applied for during the quarter. Till date, the company has been granted 68 patents.

Human resources:

The total employee strength of TCS was 214,770 on a consolidated basis at the end of Q2. Trainees started joining the company from the beginning of the July-September quarter, resulting in the addition of 10,192 trainees and 8,125 laterals in India along with 2,032 employees overseas. The utilisation rate (excluding trainees) was flat, at 83.1 per cent and that including trainees was 76.4 per cent.

Attrition decreased sharply for the company, dropping to 13.7 per cent from 14.8 per cent in Q1. Attrition in the IT services business was 12.51 per cent, while BPO attrition was at 24.25 per cent.

“We are on course to meet our hiring target for the current financial year. Our employee engagement efforts are helping to curtail attrition and increase retention of talent in the company. We remain the industry benchmark as far as utilisation is concerned and have maintained our rate in the 83 per cent range,” said Ajoy Mukherjee, executive vice president and global head, human resources.

Awards and recognition:

TCS BPO received several accolades at the Asia’s Best Employer Brand Awards held in Singapore. GappaGoshti™, the rural social networking platform developed by TCS Innovation Labs, won the Aegis Graham Bell Award in the category 'Innovative Mobile Applications’. The company also won the Nasscom Exemplary Talent Practices award for partnering with academia. TCS' PowerIT and iON won the eWorld Public Choice Awards. TCS Singapore won the ICT Team Excellence – Technical Support Award at the Singapore Technology Federation Awards 2011. TCS bagged the ‘Best Supplier’ award at NXP Semiconductors’ ‘Best Supplier Awards’. The company has been listed in Asia's Fab 50 companies list published by Forbes for the third consecutive year.TCS was conferred the 'Outstanding IT Company of the Year' award by the Federation of Andhra Pradesh Chambers of Commerce and Industry.