OREANDA-NEWS. Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading IT services, consulting and business solutions firm, reported its consolidated financial results according to IFRS for the quarter ended December 31, 2013.

Financial highlights for quarter ended December 31, 2013

Operating profit at Rs6,335 crore, growth of 44.6 percent Y-o-Y and 0.1 percent Q-o-Q.

Operating margin at 29.7 percent.

Dividend per share of Rs4.

Earnings per share at Rs27.13

Business highlights for quarter ended December 31, 2013

Gross employee addition: 14,663.

Total headcount: 290,713.

Utilisation: 84.3 percent (excluding trainees) and 77.5 percent (including trainees).

No of USD 50m+ clients increases by 2, no of USD 20m+ clients increases by 4.

Commenting on the Q3 performance, chief executive officer and managing director, N Chandrasekaran, said: “Strong international demand for our services and discipline in execution has helped TCS maintain its momentum and post robust growth in volumes as well as realisation. Our diversified market presence and services portfolio have helped us overcome seasonal weakness and soft demand in the Indian market.”

Mr Chandrasekaran added: “Based on initial discussions with our customers, we believe 2014 will be a stronger year for us than 2013, as customers execute their business plans in a relatively stable environment. With digital technologies rapidly changing the way an enterprise operates in multiple dimensions, our continuous investment positions us well to help customers reimagine their business."

Rajesh Gopinathan, chief financial officer, said: "We have been able to maintain our profitability by operating in a disciplined manner while sustaining our investments in customer-facing initiatives globally. We have also been able to significantly increase our cash generation due to efficient working capital management."

Growth in Q3 was driven by industries like life science and health care, manufacturing, media, travel and hospitality, and telecom. The company's broad-based presence across markets and services helped overcome seasonal weakness in some markets. Europe led growth, driven by the continuous investments being made in that market, while North America and UK also grew during the quarter. Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially. Among service lines, business process services, enterprise solutions and global consulting were the leaders.

Select key wins

Selected by a large global bank to provide ADM services for their payments and receivables functions.

Engaged by a leading food and grocery retailer in North America as a strategic IT partner for all application development, package implementation and digital services.

Awarded multi-year, multi-million dollar contract by a leading European pharmaceutical company to provide drug safety services leveraging global delivery.

Won multi-year engagement with a major North American telecom operator to provide comprehensive mobile application life cycle services for the development of a series of mobile applications across all major mobile platforms integrated with network intelligence.

Chosen by a global transportation conglomerate to provide remote infrastructure managed services for its worldwide operations across its group companies.

Selected by one of the market leaders in the information services industry to accelerate its ERP transformation roadmap and provide service transformation to a large portfolio of applications.

Engaged by a leading North America-based diversified industrial manufacturer to transform back office operations in finance and accounting.

Key wins in digital services and solutions

Develop mobile interface for CRM software product for a major global hi-tech company.

Develop consumer mobile application for a North American airline to promote customer engagement.

Develop mobile application and associated middleware to enable settlement of claims efficiently for an Asia-Pacific insurer.

Develop tablet application for a European payment solutions provider that simplifies the sales process for its field force.

Develop multi-platform mobile application to manage and track digital marketing campaigns for a global television and film production company.

Develop multiple mobile applications for enterprise users of a global pharmaceutical manufacturer.

Develop multi-platform mobile application for human resource function of a major European retailer.

Develop workflow application on multiple platforms for use by the management of an Asia-Pacific airline.

A multi-year engagement with a major insurance company in North America for digital experience transformation of its online channels.

Revamp digital marketing platforms at a global banking and financial services company.

Develop modern user experience for new trading platform of a major European stock exchange.

Transform online channels for a UK-based health insurance company.

Transform digital channels to enable better customer experience for a manufacturing company in North America.

Build enterprise risk management and compliance big data warehouse for a leading North American bank.

Manage big data infrastructure for a major North American aerospace manufacturer.

Build components of big data architecture for risk management for a major North American banking and financial services provider.

Migrate legacy mainframe systems to big data systems for a US-based financial services company.

Establish big data infrastructure and data archival solution for a North American retailer.

Provide strategy consulting services for big data systems for asset management to a European telematics and telecom company.

Set up big data based applications for retail use cases for a major UK-based retailer.

Innovation and intellectual property

As of December 31, 2013, the company has applied for 1,535 patents, including 94 applied during the quarter. Till date, the company has been granted 102 patents.

Human resources

The company continued to hire to support business growth. There was a total gross addition of 14,663 people (net addition of 5,463 employees) taking the total employee strength of 290,713 employees on a consolidated basis. The utilisation rate (excluding trainees) was at 84.3 percent and that including trainees was 77.5 percent. The attrition rate (LTM) was stable at 10.9 percent including BPS. The attrition rate in IT was at 10.3 percent, while BPS attrition fell to 13.4 percent.

“To support business growth, we have increased our hiring target by a further 5,000 employees for the current financial year to 55,000 professionals,” said Ajoy Mukherjee, executive vice president and global head, human resources. “Our efforts to push the utilisation lever is paying dividends with utilisation rates including trainees rising to 77.5 percent and that excluding trainees at over 84 percent.”

Awards and recognition

Business leadership:

Ranked India's 'Most Valuable Company' in BT 500 rankings for second-year-in-a-row.

Forbes Asia 'Fabulous 50' Award 2013.

Multiple corporate engagement awards in Europe.

The company was awarded two 'gold' awards in the best partnership in sports and best program to raise brand awareness categories, as well as a 'bronze' in the best community involvement category.

APOnline wins “Financial Inclusion & Payment Systems” (FIPS) 2013 award.

Ranked in top two amongst IT service and outsourcing firms in China.

Ranked Best Employer in China 2013.

TCS Netherlands wins TOMMIE Award for 'The Most Innovative Sourcing Vendor 2013'.

Three government ISU projects win CSI Nihilent Award of Recognition 2013.

TCS-legal and general (L&G), won NOA IT outsourcing project of the year award.

Partner:

Microsoft 'Public Sector Partner' award at Microsoft Partner Summit 2013.

SAP Customer Awards of Excellence 2013.

'Social Innovation Partner of the Year' Award from Hitachi.

Sustainability:

Parivartan Sustainability Disclosure Leadership Award 2013.

TCS recognised by the US Chamber of Commerce Foundation under the best corporate steward award category.

TCS Chile receives 'Best Company Award' for continuous support towards CSR initiatives by Fundacion Regazo.

Leadership:

N Chandrasekaran, CEO and MD, received the following awards:

Business Standard: CEO of the Year for 2013.

Business Today: Best CEO for 2013.

Express IT Awards: Newsmaker of the Year.

Business India: Businessman of the year 2013.