Broad-based Demand, Resilient Margins Power Strong Earnings Growth in Q2 for TCS.
Revenue at
All Verticals Grow 15%+ YoY; BFSI crosses
North America Grows 17.4% YoY CC
Industry-Leading Operating Margin Expands to 25.6%
Net Income at
Highlights of the Quarter Ended
Revenue at
Operating Margin at 25.6%; +0.1% QoQ, -0.6% YoY
Net Income at
Strong Client Addition: 5 New Clients (total: 54) in $100Mn+; 17 new clients (total: 114) in $50Mn+
Net headcount addition of 19,690 |Workforce strength: 528,748
Diverse and inclusive: Women in the workforce: 36.2% | 157 Nationalities
Building a G&T workforce: 417K+ employees trained in new technologies | 26K+ Contextual Masters identified | 6,900+ Elevate graduates
Best in class talent retention: LTM IT Services attrition rate at 11.9%; lowest in the industry
Dividend per share: ' 7.00 | Record date
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: 'We are pleased with our overall delivery performance during the quarter, where several large complex programs across verticals went live, thanks to the passion, energy, and commitment of our people. These include programs such as contact-less payments, card-less withdrawal of cash from ATMs for leading banks, space-range-display transformation for retailers, one of the largest application transformations to public cloud native architecture, all leveraging our automation led G+T framework, agile methods and toolkit. Our products and platforms, TCS BaNCS,Quartz SmartLedgers, TwinX and TCS Cognix, all had marquee wins during the quarter and are increasingly driving business and operating model transformations in many markets.'
Q2 Segment Highlights**
Industries: All verticals showed strong, double-digit YoY growth. Growth was led by the Manufacturing vertical (+21.7%), followed by Life Sciences and Healthcare (+19%), Retail and CPG (+18.4%) and BFSI (+17%). Communications & Media (+15.6%) and Technology & Services (+14.8%) witnessed accelerated growth.
Markets: All major markets showed strong growth, with growth led by
Services: Q2 saw strong demand for growth and transformation services as customers took a longer-term view of their businesses, driven by improving vaccination levels and business outlook. There was broad-based growth for services around cloud, enterprise application services, analytics and IoT.
Consulting & Services Integration: Continued to deliver strategic transformation programs and provide outcomes-focused thought leadership for client pursuits and deliveries. Key offerings driving growth this quarter were Supply Chain and NextGen Enterprise Transformations.
Digital Transformation Services: Growth this quarter was led by Enterprise Application Services, Analytics & Insights and Internet of Things. Enterprises continue to invest in growth and transformation programs, and the focus remains on building digital platforms of the future. Growth for Enterprise Application Services was led by e-Commerce and customer experience, supply chain, and human capital management solutions leveraging SAP S/4HANA and Salesforce. IP-led offerings in Analytics and Insights, such as DATOM, DAEzMo and Decision Fabric saw strong resonance. TCS Bringing Life to Things is emerging as a key enabler in the connected enterprise initiatives of marquee customers. Next-Gen asset life cycle management, vehicle engineering, and digital thread are key themes driving the demand for Engineering and IoT services.
Cloud Platform Services: Continued to see traction for core application migration services, workplace services and modernization initiatives leveraging cloud native development. TCS was recognized as Google Cloud's 2020 Breakthrough Partner of the Year in Q2.
Cognitive Business Operations: TCS Cognix and MFDM powered 5 very large deal wins by driving digital transformation of operations. Data Center, Network and F&A services led the growth. Cognix continues to make strong strides, with the installed base crossing 150, helping customers improve business agility, user experience, operational resilience, and operational efficiency.
** Year on Year Growth in Constant Currency terms
Research and Innovation
As on
Human Resources
The company's ability to attract and retain talent at scale, and its continued investments in organic talent development, have enabled it to fulfill much of the incremental demand in newer technologies using internal candidates. Employees logged over 14.3 million learning hours in Q2. Over 496,000 employees have been trained in Agile methods and over 417,000 employees have been trained on multiple new technologies.
TCS added 19,690 employees on a net basis in Q2, taking the total employee base to 528,748 as of
TCS' philosophy of investing in people and its progressive workplace policies have resulted in industry-leading talent retention. IT Services attrition rate (LTM) was at 11.9%, the lowest in the industry.
'This has been a fulfilling quarter in more ways than one. We brought on board a record number of 43,000 fresh graduates in the last six months. Our Shift-Left training strategy has helped us significantly accelerate their deployment. Investing ahead of time in building our own pipeline of talent has helped us overcome supply-side challenges, and meet the execution timelines of our customers' growth and transformation programs. By focusing on organic talent development and by linking learning with careers, we have kept employee satisfaction levels high. At the same time, we continue to scale up programs like Contextual Masters and Elevate to groom the G&T leaders for the workforce of tomorrow,' said
Awards and Recognition
Business Leadership:
Named to the Microsoft Business Applications 2021/
CEO and Managing Director,
TCS Bringing Life to Things IoT framework received the Emerging Brand Award at the CMO Vision and Innovation Awards 2021.
Won 14 Gold Medals, 3 Silvers and 3 Bronzes at the 2021 Brandon Hall Group Excellence in Learning Awards, across
Innovation and IP:
Won 4 Stevie awards for innovation and IP at the International Business Awards 2021:
Gold Stevie for 'Most Innovative Tech Company' in the 'more than 2500 employees' category
Gold Stevie for TCS TwinX in the Business Technology Solution category - AI/ML solution
Bronze Stevie for TCS' Data Exchange Platform in the Most Valuable Technical Innovation - COVID-19 Response category
TCS' Data Marketplace Solution for COVID-19 awarded at the 19th Asian IT Leadership Awards 2021 under the Best Use of IT in Healthcare category.
Recognized as an 'Innovator' at NASSCOM AI Gamechangers 2021 in the Use of AI for Public Services Category for its innovative AI-based Sanitation Inspection system.
TCS Research Scientist awarded the IIT-Bombay Naik and Rastogi Award 2021 for research excellence and best thesis.
Community:
TCS Bringing Life to
TCS' AI-based Sanitation Inspection solution recognized at the 19th Asian IT Leadership Awards 2021 under the Best Use of IT for Social Cause.
Partner:
TCS won the following awards and recognition from technology alliance partners:
MongoDB Global System Integrator Partner of the Year Award for its bold, innovative solutions that accelerate the growth and transformation journeys for businesses across industries.
2020 Google Cloud Breakthrough Partner of the Year for demonstrating innovative thinking, outstanding customer service, and best-in-class use of Google Cloud products and solutions.
Two 2021 Microsoft Partner of the Year Awards - Azure Intelligent Cloud in
Cohesity GSI Innovation Partner of the Year FY21, for accelerating innovation and increasing the ease of doing business.
Consulting Winner along with customer
Celonis BPO Partner of the Year at the Celonis Ecosystem Summit 2021.
About
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