Digital business, growing at 31%, brings 19.7% revenue to TCS

TCS digital revenue growthTata Consultancy Services (TCS) today said its digital revenue contributed 19.7 percent to total revenue in the September quarter of fiscal 2017.

TCS said its digital revenue rose 31 percent year-on-year and 5.9 percent quarter-on-quarter.

TCS posted revenue of $4,739 million (+8.3 percent) and net income of $1 billion (+1.6 percent) with an operating margin of 25.1 percent (+1.7 percent).

TCS added one new client in $100 million + band; 6 clients each added in $50 million +, $20 million + and $10 million + bands and 28 clients in $1 million + band.

TCS said IT Attrition rate (LTM) fell by 0.3 percent to 11.3 percent. TCS added 15,868 employees to reach total employees of 389,213.

Rajesh Gopinathan, CEO and MD of TCS, said: “Broadbased client metrics demonstrates increasing success with newer customers. Large deal wins this quarter, a good pipeline, and bottoming out of the Retail sector softness positions us well.”

Q2 segment highlights

With the exception of Retail and CMI, all industry verticals grew above the company average, led by Travel & Hospitality (+8 percent Q-o-Q), Energy & Utilities (+7.2 percent Q-o-Q) and Life Sciences & Healthcare (+3.6 percent Q-o-Q). On a year on year basis, all industry verticals – with the exception of BFSI and Retail – grew above 9.5 percent.

TCS said growth was led by Europe (+5.3 percent Q-o-Q), Latin America (+5.7 percent Q-o-Q), APAC (+3 percent Q-o-Q) and UK (+2.5 percent Q-o-Q). North America grew by 1.4 percent Q-o-Q with continued softness in Banking and Retail.

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