OREANDA-NEWS. Tata Consultancy Services (TCS) (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 June 30, 2014.

Financial Highlights for Quarter Ended June 30, 2014

Operating Income* at Rs 5,815 crore; Growth of 19.6 % Y-o-Y and (7.4%) Q-o-Q

Operating Margin at 26.3 %

Total Dividend per share of Rs45 including Rs40 as special dividend on 10th anniversary of IPO

Earnings Per Share at Rs25.82

Business Highlights for Quarter Ended June 30, 2014

Gross Addition 15,817 Employees & Net Additions 4,967 Employees

All time High Utilization rates at 85.3% (excluding trainees)

Five new USD 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: "During the quarter, 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."

During Q1, TCS posted the highest incremental revenue of USD 191 million in the last 15 quarters driven by holistic growth across markets led by North America, Europe, India and Asia-Pacific. Growth was seen across all industry segments led by Media & Information Services, Life Sciences, Retail and Telecom with all non-BFS verticals growing in excess of five percent sequentially.

Select Key Wins:

Awarded Multi-year, multi-million dollar end-to-end IT infrastructure outsourcing deal from a North American global pharmaceutical and medical device company

Selected by a leading Nordic Operator as its partner to modernize and simplify fixed network operations in a multi-year contract

Chosen as preferred partner by a large Australian Bank for providing IT services for its private banking, wealth management, insurance and superannuation lines of businesses

Selected by a leading North American specialty retailer as a Strategic Preferred Partner for global technology transformation

Won a multi-million euro, multi-year engagement to provide Infrastructure Services to a leading fashion apparel retailer in Europe

Selected by a North American insurance company for a multi-million dollar, multi-year engagement to support and enhance their core IT Applications

Awarded a multi-year, multi-million dollar deal for end-to-end managed infrastructure services from a global semiconductor company

Won an engagement to define strategic roadmap and provide consulting services on operating model for campaign management for a major Australian superannuation service provider

Key Wins in Digital:

Won an engagement with an American healthcare and insurance company to build big data platform for enabling 360 degree customer view

Selected by a large North American food retail chain to develop digital applications that provide "on the go" analytics and enable quicker decision making for store managers

Chosen by a leading global insurance major to develop customer centric sales applications using digital technologies

Selected by an Asian telecom company to define its big data strategy and roadmap

Engaged by a North American bank for building its enterprise compliance data store using Big Data technologies

Selected by a global North American telecom company to revamp user experience for its sales field application

Selected by a leading telecom provider in UK to design and develop a POS application to enable customer journey through multiple digital touch points

Innovation and Intellectual Property:

As of June 30, 2014, the company has applied for 1,804 patents including 58 applied during the quarter. Till date, the company has been granted 129 patents.

Human Resources: Gross Additions 15,817 & Net Additions 4,967

The 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% and that including trainees was 79.8%. The attrition rate (LTM) was seasonally higher at 12.0% 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.

Awards and Recognition:

Golden Peacock National Training Award 2014

Best Corporate Sustainability Strategy award at the HR Excellence Awards 2014 in UK & Ireland

Outsourcing Services Award for Excellence from Data News in Belgium

Partner:

Innovation Award partner from Informatica in Test Data Management

Run SAP Partner of the Year and Customers' Choice Award from SAP Pinnacle

Best Service Support 2014 Award from Renault-Nissan

Sustainability:

Gold Stevie award for Corporate Social Responsibility Program of the Year and Silver Stevie for HR department of the year at the 2014 American Business Awards

Earth Care Award 2014 from JSW-Times of India

2014 Community Corps Corporate Champion for deep commitment to enhancing quality of STEM Education - Lumity Awards

Expenses include an additional one time charge of Rs1,746 million in depreciation on account of change in useful life of assets as at April 1, 2014.