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PR Newswire

TCS Delivers Strong Q3; Rev Crosses $7 bn Propelled by Cloud Demand and Market Share Gains

Revenue Growth of +13.5% YoY in CC; 8.4% YoY in USD Growth led by North America & UK (+15.4% YoY in CC) Operating Margin at 24.5%; Net Margin at 18.6% IT Services Attrition trending down: LTM Attrition at 21.3% Board Announces Dividend of Rs 75/share Including Special Dividend of Rs 67/share

MUMBAI, India, Jan. 10, 2023 /PRNewswire/ — Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending December 31, 2022.

Highlights of the Quarter Ended December 31, 2022

Revenue at 7.075 billion, +8.4% YoY, +13.5% YoY in constant currency Order Book at $7.8 billion | Book to Bill at 1.1 Operating Margin at 24.5%; contraction of 0.5% YoY Net Income at $1.318 billion, +1.1% YoY | Net Margin at 18.6% Net Cash from Operations at $1.354 billion ie 102.8% of Net Income Net headcount addition of -2,197 |Workforce strength: 613,974 Diverse and inclusive workplace: Women in the workforce: 35.7% | 153 Nationalities Building a G&T workforce: 11.4 million learning hours clocked | 1.3 million competencies acquired LTM IT Services attrition rate at 21.3% Total Dividend per share of Rs 75 per share including Rs 67 as special dividend
Record date 17/01/2023 | Payment date 03/02/2023 Total Shareholder Payout of Rs 33,297crore Year till Date

Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “We are pleased with our strong growth in a seasonally weak quarter, driven by cloud services, market share gains through vendor consolidation, and continued momentum in North America and UK. The sustained strength of demand for our services is a validation of the value we provide to our clients in helping them differentiate themselves, while enhancing their competitiveness. Looking ahead, and beyond current uncertainties, our longer-term growth outlook remains robust.”

N Ganapathy Subramaniam, Chief Operating Officer and Executive Director, said: “As I look back at 2022, it’s gratifying to see the privileged partnership that we continue to enjoy with our clients globally. In a hybrid working model we delivered many complex transformation programs tailored to the specific needs of our clients’ ecosystem with speed and agility. It’s also refreshing to see our delivery centers and PacePort labs busy with our consultants and client executives jointly reimagining solutions to deliver the future, now. The year also saw us embracing data, AI and ML holistically to disrupt ourselves and drive competitive advantage to our clients’ businesses. All these augur well for our future as we step into 2023.”

Samir Seksaria, Chief Financial Officer, said: “Improved productivity, currency support and abating supply-side challenges helped expand our operating margin in Q3. This gives us greater confidence in our ability to steer our profitability towards our preferred range, while continuing to invest in building newer capabilities to support our growth and market share gains.”

Milind Lakkad, Chief HR Officer, said: “Our focus over the last few quarters on bringing in fresh talent at scale, training them on new technologies and making them productive is paying off. We are particularly proud of having 125,000 TCSers at middle and senior levels who have been with the company for more than 10 years on average. They have been central to the successful cultural integration of all the fresh talent we have onboarded in the last couple of years, and their contextual knowledge and customer-centricity have been key to the high level of customer satisfaction that TCS is known for.”

Q3 Segment Highlights**

Industries: Growth was led by Retail and CPG (+18.7%) and Life Sciences & Healthcare verticals (+14.4%). Communications & Media grew +13.5% and Technology & Services grew +13.6%. Manufacturing grew +12.5% while BFSI grew +11.1%.

Markets: Among major markets, North America and UK led with +15.4% growth; Continental Europe grew +9.7%. In emerging markets, Latin America grew +14.6%, India grew +9.1%, Asia Pacific grew +9.5% and Middle East & Africa grew +8.6%.

Services: Growth in Q3 was led by Cloud, Cyber Security, Consulting Services and Enterprise Application Services.

Consulting & Services Integration: Demand for Consulting services focused on strategic growth and transformation offerings including next-gen ERP transformation, supply chain and cloud strategy. Cloud Platform Services: TCS’ cloud units continued to see very strong growth led by services for cloud migration and modernization, hybrid cloud adoption, managed services and governance. Digital Transformation Services: Growth in Q3 was led by offerings around Salesforce, SAP, and niche SaaS platform services in the areas of human capital management, supply chain & CRM, managed security services and enterprise vulnerability management. There was increased SaaS adoption to improve the experience across sales & service channels, improve employee engagement, and derive better business insights. TCS’ services leveraging TCS Crystallus™ are delivering business value through industry innovations across the enterprise. On the cybersecurity front, clients engaged TCS to uplift and automate the invested ‘defense in depth’ security architecture and processes while ensuring agility in tackling adverse events through threat surface management and automation. Clients also engaged TCS to help them with cyber-audits and assessments, threat intelligence, and Digital Identity Management. Cognitive Business Operations: Witnessed strong bookings in this quarter led by several large deals reflecting the robust demand for our business services. Our next-gen integrated MFDM™ led operations services leveraging Cognix™ continued to see strong adoption. We are seeing a trend among our customers of vendor consolidation and managed services across functions to enable optimization, co-innovation, faster decisions with intelligent analytics, and better user experience. Growth for the quarter was led by Supply Chain, F&A, and Digital Workplace services.

** Year on Year Growth in Constant Currency terms

Research and Innovation

As on December 31, 2022, the company had applied for 7,134 patents, including 212 applied during the quarter, and been granted 2,694 patents, including 134 during the quarter.

Human Resources

TCS’ workforce was at 613,974 as on December 31, 2022, a net reduction of 2,197 during the quarter. The improved productivity was achieved by focusing on utilizing the excess capacity built up over prior quarters and through investments in organic talent development. In Q3, TCSers clocked 11.4 million learning hours, resulting in the acquisition of 1.3 million competencies.

The workforce continues to be very diverse, comprising 153 nationalities and with women making up 35.7% of the base.

IT services attrition on an LTM basis trended down to 21.3% and is expected to fall further in the coming quarters.

About Tata Consultancy Services
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 50 years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile™ delivery model, recognized as a benchmark of excellence in software development.

A part of the Tata group, India’s largest multinational business group, TCS has over 613,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $25.7 billion in the fiscal year ended March 31, 2022, and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS’ proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit www.tcs.com 

TCS media contacts:

Asia Pacific

Email: wenjian.lin@tcs.com | Phone: +65 9695 9948

Australia and New Zealand

Email: kelly.ryan@tcs.com | Phone: +61 422 989 682

Canada 

Email: tiffany.fisher@tcs.com | Phone: +1 416 456 7650 

Europe

Email: joost.galema@tcs.com | Phone: +31 615 903387

India

Email: saxena.kritika@tcs.com| Phone: +91 22 6778 9999

Email: vanshika.sood@tcs.com | Phone: +91 22 67789098

Middle East & Africa

Email: pragya.priyadarshini@tcs.com | Phone: +971 528656700

Japan

Email: douglas.foote@tcs.com | Phone: +81 80-2115-0989

Latin America

Email: alma.leal@tcs.com | Phone: +521 55 2095 6098

UK

Email: peter.devery@tcs.com | Phone: +44 20 3155 2421

USA 

Email: james.sciales@tcs.com | Phone: +1 917 981 7651

 

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