TCS Reports Resilient Demand with Strong Order Book and 13.7% CC Growth in FY 23.
HIGHLIGHTS
Revenue at '
Net Income at '
Order Book of
Highlights of the Quarter Ended
Revenue at
Constant Currency revenue growth: +7% YoY
Operating Margin at 23.2%; an expansion of 0.1% YoY
Net Income at
Net headcount addition of 523 |Workforce strength: 615,318
Diverse and inclusive workplace: Women in the workforce: 35.8% | 154 Nationalities
Building a G&T workforce: 12.7 million learning hours clocked | 1.3 million competencies acquired
LTM IT Services attrition rate at 17.8%
Dividend per share: ' 9.00 | Record date
K Krithivasan, Chief Executive Officer and Managing Director, said: 'It is very satisfying to start the new fiscal year with a string of marquee deal wins. We remain confident in the longer-term demand for our services, driven by the emergence of newer technologies. We are investing early in building capabilities at scale on these new technologies, and in research and innovation, so we can maximize our participation in these opportunities.'
N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: 'Our products and platforms achieved major milestones during the quarter with several transformational engagements going live. In the
Q1 Segment Highlights**
Industries: Growth was led by Life Sciences and Healthcare which grew 10.1% and the Manufacturing vertical which grew 9.4%. BFSI grew 3%, Retail and CPG grew 5.3%, Technology & Services grew 4.4% while Communications & Media grew 0.5%.
Markets: Among major markets, the
Services: Clients continue to reprioritize, preferring business critical projects and those with a faster ROI. Cost optimization, vendor consolidation and integrated operations are high on priorities. Enhanced flexibility, resilience, and establishment of a solid foundation continue to drive transformation initiatives. Growth was led by cloud modernization, cyber security, IoT and digital engineering.
There is strong interest across industry verticals to engage with TCS to explore generative AI use cases around productivity improvement, content creation and enriching customer interactions with personalized experiences. TCS is supporting these early initiatives through its co-innovation frameworks.
TCS' point of view is that the full potential of generative AI is best realized through a holistic enterprise-wide initiative encompassing business, legal, risk & compliance, research and innovation, rather than by implementing multiple point solutions. It has launched an advisory offering to help customers create a holistic vision, strategy, business case and plan for enterprise-wide adoption of Generative AI.
Consulting & Services Integration, Digital Transformation Services: Clients continued to invest in ERP cloud platforms focusing on ecommerce, customer experience, digital workplace and analytics, security operations transformation to improve effectiveness, observability and coverage, and drive design-led innovation, CX transformation and manufacturing transformation. TCS Crystallus has helped accelerate some of these transformation journeys and drive speed to value. Cyber Security services saw acceleration, aided by clients adopting the TCS Cyber Defense platform for their NextGen SecOps. TCS Interactive saw traction around digital marketing with real time insights, as well as digital commerce initiatives to drive digital sales and enhance customer experience. TCS Clever Energy continues to see good interest as clients pursue their net zero plans. In the digital engineering area, TCS continues to participate in client spending around new product development and EV charging infrastructure.
Cloud Platform Services: Clients continue to invest in building a strong cloud foundation for business innovation. Cloud migration, data modernization and application modernization coupled with new digital technologies such as AI continue to drive growth. TCS' investments in deepening competencies and building new capabilities have yielded good results. It is a launch partner for the hyperscalers in multiple new technology launches, including generative AI. TCS has around 148,000 employees with hyperscaler cloud certifications, one of the highest in the industry. In Q1, it won Microsoft's 2023 Partner of the Year awards in five categories.
Cognitive Business Operations: Clients focused on improving employee experience, transforming infrastructure operations leveraging MFDM and vendor consolidation. Client interest in operating model transformations led by Cognix continues to be very strong. Another area of strong demand was for implementing TCS' Integrated Operations model, with AI-powered business command centers, offering business owners greater visibility and resilience across their entire operations stack.
** Year on Year Growth in Constant Currency terms
Key Highlights
Selected by Nest,
Awarded a 10-year contract by the
Engaged by Standard Life International DAC, a wholly owned subsidiary of the
Selected by a US-based healthcare company as the strategic partner to provide end-to-end application management and end-user services across their entire value chain. TCS will leverage its deep expertise in med-tech and regulated life sciences, and MFDM, to implement a transformative solution that will improve the user experience, efficiency, resilience and compliance.?
Chosen by a US-based large utility services provider to re-architect their Geographic Information Systems. TCS will integrate IoT devices and enable real-time data feeds to multiple systems including transmission and distribution, asset management, wildfire protection and earthquake monitoring. This will help the client effectively plan preventive maintenance, improve agility, and enhance end-customer experience.
Selected by a leading American multinational diesel and natural gas engine manufacturer, as the strategic partner in their sustainable products development initiative. TCS will develop electrified powertrain and green hydrogen products, and implement next gen product lifecycle management (PLM) processes & tools. This will accelerate product launch through global product design collaboration.?
Chosen by a US-based automotive supplier as the partner to support their next-gen program for EVs. TCS will develop the software for critical electrical components which will enable aggressive launch timelines while also ensuring required safety compliance.
Chosen by a US-based leading producer and distributor of dairy products as the strategic partner to manage security services. TCS will support the security operations center (SOC), security incident response and privilege access management by leveraging TCS Cyber Defense Suite.
Selected by a leading North American healthcare service provider to transform three of their core areas - pharmacy care services, pharmacy benefit manager and pharmacy experience, to increase speed, create efficiencies, drive revenues, and make it the preferred pharmacy choice for clients, consumers, and providers.
Selected by a European semiconductor manufacturer to build modern digital experience capabilities for its ecommerce business. TCS will design and develop a globally consistent purchase journey that empowers prospects and customers with various self-service capabilities and enable competitive differentiation.
Chosen by a US-based global technology company to transform their B2C ecommerce platform. TCS will modernize their core online business portfolios worldwide in a phased manner. This will lead to improved sales, enhanced customer experience and faster go to market.
Chosen by a US-based pharmacy benefit management and specialty managed care company as their trusted partner in a multi-year transformative journey to reimagine their patient care models. TCS will build a cloud-based and data-driven platform that will connect patients to the highest quality care. This will lead to improved clinical outcomes and better patient and care-giver experiences.
Selected by a large European airline group to migrate all workloads to the cloud and manage the IT infrastructure operations across its operating companies. TCS will provide end-to-end managed hybrid cloud services including multi-modal cloud operations, AIOps, FinOps and SRE. This will enable greater business agility, faster time to market and enhanced customer experience.
TCS has won a comprehensive strategic managed services program from a leading technology product and platform firm. TCS will facilitate the expansion of their cloud services by effectively overseeing their partner and customer ecosystem, helping proficiently manage customer investment funds and strategically utilizing them to drive transformative initiatives across various areas, including cloud, modern workplace, security, and business applications platforms.
TCS is selected by a large global payment processing and technology company to migrate their existing infrastructure to TCS Enterprise Cloud. TCS is responsible for data center migration, cloud infrastructure hosting and management, driven by transformation and modernization initiatives. This will bring resiliency and scalability to support their growth strategy and reduce total cost of ownership to manage their infrastructure landscape.
Customer Speak
01 / 05
I'm looking forward to continuing our journey with TCS and exploring the opportunities ahead of us. We have a strong foundation after many years of working together and they've proven their ability to deliver successfully for a scheme the size and complexity of Nest. This puts us in an excellent position to further advance our operations and build a truly digital offering that delivers a superior customer experience long into the future. The interests of our members are always our top priority and drive every decision we make and we're rightly ambitious about what we can achieve for them. I'm confident that our partnership with TCS will enable us to develop our world class service to further support millions to enjoy a better retirement.
Chief Customer Officer, Nest
01 / 05
As we move into the next phase of our transformation to reshape M&S for growth and value creation, we are delighted to extend our partnership with TCS. Together, we pivoted M&S to a digital-first business and achieved key business outcomes such as growing dotcom, driving loyalty through Sparks and realising significant cost and productivity efficiencies. Their industry advisory capabilities will help us accelerate the pace of business transformation by improving time to market; increasing the efficiency and effectiveness of M&S' operating model; reducing technical debt; and infusing innovation for growth and value creation. This will enable us to achieve our goals of significantly increasing our active app userbase; further growing online sales volume; and building an efficient, resilient supply chain network.
Co-Chief Executive Officer,
01 / 05
We partnered with TCS to reimagine our digital workspace operations with the vision to create 'Best in class Digital Workplace Service' for our employees and partners. Backed by their deep contextual industry knowhow, TCS deployed Cognitive and Integrated Operations model and leveraged Cognix value builders to embed advanced technologies such as AI, Automation and Self-healing. We were able to provide an intelligent, intuitive and proactive 'Virtual Techlounge' that significantly uplifted our employee experience, operational efficiency, and effectiveness.
Chief Information Officer, EDF
01 / 05
TCS' Cognitive Business Operations has equipped our finance function with advanced capabilities to drive organizational growth and respond effectively to the dynamic business environment. Leveraging their deep financial knowledge, process re-engineering expertise and Cognix powered AI and automation solutions, TCS consolidated operations across 80+ countries and transformed us into an insights-driven finance organization, resulting in superior business outcomes.
Chief Accounting Officer,
01 / 05
Agile and future-ready cargo operations have been the bedrock at Swiss World Cargo, enabling us to provide seamless SWISS quality to our air freight customers through our services. TCS has been our long-standing partner in this journey, supporting our finance and airline operations with their consulting-led approach, freight industry know-how, and innovative digital solutions powered by Cognix. This partnership has helped us enhance even further our quality of service and our profitability, as we continue to deliver on our quality and work on our sustainable practices.
Lorenzo STOLL
Vice President and Head of Cargo Division, Swiss World Cargo
Research and Innovation
As on
Human Resources
TCS' workforce stood at 615,318 as on
The company rolled out its annual salary increase across its workforce, with effect from
IT services attrition dipped further in Q1 and was at 17.8% for the last twelve months.
Awards and Recognition
Business Leadership:
Ranked #2 by
Recognized as the most valuable Indian brand by Interbrand, topping the 50 Most Valuable Indian Brands 2023 list.
Positioned at the 387th place in Forbes Global 2000 Rankings of the largest companies in the world.
Received the Company of the Year award in the Digital Financial Inclusion Solution category from
CFO,
Named 'Top Company to work for in
Named 2023 honoree of The Civic 50 in the Points of Light's prestigious annual list recognizing the top community-minded companies in
Ranked among the Top 10 Sustainable Companies in the 3rd edition of Sustainable World Conclave organized by BusinessWorld.
Innovation and IP
Won the Platinum award in the
The TCS-built New York City Marathon App won the Webby People's Voice Award for its livestreaming feature that advances accessibility, equity, and inclusion in professional sports.
Won The Economic Times DataCon Awards 2023 in the category Holistic Large Data Management.
Won AI Breakthrough Award 2023 in the category Best BI Visualization Solution for TCS Governance Visual Analytics Solution.
Won 2 awards at the 14th DataCenter Summit and Awards for Data Center Capacity Management and Data Center Cost Management.
Recognized with 3 Golds and 1 Bronze at Stevie Asia Pacific Awards 2023 for ignio (Gold), TCS Data Privacy (Gold), TCS HR Policy
Won a Gold for TCS Marketing Data Hub in the category Achievement in Product Innovation and a Bronze for TCS Compliance Management Solution in category Governance, Risk & Compliance Solution at the Stevie American Business Awards 2023.
Partner
Won 5 awards at Microsoft's 2023 Partner of the Year Awards event. In the global category, TCS won the MVP Industry Solutions Global Systems Integrator (GSI) award. TCS also won 3 US Partner of the Year awards in the categories Global Systems Integrator, Industrials and Manufacturing, and Dynamics 365 Sales and Marketing. Additionally, TCS was named the Malaysia Customer Success Partner of the Year.
Won the SAP Pinnacle Award 2023 for Social Impact for its dedication and creating a lasting positive impact through social impact initiatives or the power of innovation. Additionally, TCS' transformational work for Versuni won the latter the SAP Innovation Award 2023 in the Industry Leader category for transforming the consumer products industry and driving innovation & customer value.
Won the Global award Innovator Partner of the Year at
Awarded the Industry Excellence by
Won the regional Partner of the Year award from
Awarded the Global System Integrator Partner Innovation of the year award 2022 by Qlik.
Industry Analyst Assessments
TCS was ranked a Leader in 32 competitive assessments published by leading research firms in Q1. In 4 of these, marked with an asterisk in the table below, TCS was positioned the foremost leader or ranked #1.
Firm
Report Type
Report Title
Everest
Top 20
IT Service Provider of the Year - 2023
IDC
Market Share
Worldwide Services Market Shares, 2022:
Everest
PEAK Matrix
5G Engineering Services PEAK Matrix Assessment 2023: The Next Frontier in the Hyperconnected Era
Everest
PEAK Matrix
Enterprise Blockchain Services PEAK Matrix Assessment 2023
Radar
Media and Entertainment Digital Services 2023-2024 RadarView
Everest
PEAK Matrix
Healthcare Data and Analytics Services PEAK Matrix Assessment 2023
Everest
PEAK Matrix
Medical Devices Digital Services PEAK Matrix Assessment 2023*
IDC
MarketScape
Worldwide Retail Commerce Platform Service Providers 2023 Vendor Assessment
Everest
PEAK Matrix
Asset and Wealth Management IT Services PEAK Matrix Assessment 2023
Radar
Banking Process Transformation 2023 RADARVIEW
Radar
Financial Services Digital Services 2023-2024 RADARVIEW
Everest
PEAK Matrix
Life and Annuities (L&A) Insurance BPS and Third-Party Administrator (TPA) PEAK Matrix Assessment 2023*
HFS
HFS Horizons
HFS Horizons: Supply Chain Services, 2023
Everest
PEAK Matrix
Gartner
Magic Quadrant
Magic Quadrant for Finance and Accounting Business Process Outsourcing
IDC
MarketScape
IDC MarketScape: Worldwide Finance and Accounting Business Process Services in the Cloud 2023 Vendor Assessment
Everest
PEAK Matrix
Intelligent Process Automation (IPA) PEAK Matrix Assessment 2023
Everest
PEAK Matrix
Application Automation Services PEAK Matrix Assessment 2023
HFS
HFS Horizons
Choosing the best provider for data modernization services, 2023
Radar
Applied AI Services 2022-2023 Radarview
Radar
Internet of Things Services 2023 RADARVIEW
Gartner
Magic Quadrant
Magic Quadrant for Data Center Outsourcing and Hybrid Infrastructure Managed Services, Worldwide*
NEAT
Quality Engineering 2023*
Gartner
Market Share
Market Share Analysis: Managed Security Services, Worldwide, 2022
Radar
Cybersecurity Services 2023 RADARVIEW
IDC
MarketScape
IDC MarketScape: Asia/Pacific Oracle Application Implementation Services 2023 Vendor Assessment
Everest
PEAK Matrix
NEAT
SAP Cloud Migration Services 2023
Everest
PEAK Matrix
Low-code Application Development Services PEAK Matrix Assessment 2023
NEAT
Adobe Experience Cloud Services 2023
Gartner
Market Share
Market Share Analysis: Application Implementation and Managed Services, Worldwide, 2022
IDC
Top 10
IFRS Financial Statements
Consolidated Statements of Comprehensive Income
For the three-month periods ended
(In millions of $, except per share data)
Three-month periods ended
Three-month periods ended
Revenue
6,780
7,226
Cost of revenue
4,175
4,370
Gross margin
2,605
2,856
SG & A expenses
1,039
1,182
Operating income
1,566
1,674
Other income (expense), net
76
150
Income before income taxes
1,642
1,824
Income taxes
419
471
Income after income taxes
1,223
1,353
Non-controlling interests
5
6
Net income
1,218
1,347
Earnings per share in $
0.33
0.37
Consolidated Statements of Financial Position
As of
(In millions of $)
As of
2023
As of
2023
Assets
Property and equipment
1,410
1,372
Right-of-use Assets
919
924
Intangible assets and
593
581
Accounts Receivable
5,010
5,069
Unbilled Revenues
1,816
1,801
Invested Funds
6,058
7,428
Other current assets
805
784
Other non-current assets
1,117
1,065
Total Assets
17,728
19,024
Liabilities and Shareholders' Equity
Shareholders' Funds
11,252
11,572
Current liabilities
5,297
6,316
Non-current liabilities
1,082
1,046
Non-controlling interests
97
90
Total Liabilities
17,728
19,024
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