TCS digital revenue grows 51% representing 29% of total business

Tata Consultancy Services (TCS) has posted revenue of $20.9 billion (+9.6 percent) with operating margin of 25.6 percent (+79 bps) and net income of $4.5 billion (+12.2 percent) in fiscal 2018-19.
TCS revenue growth fiscal 2019
TCS said its digital revenue represented 28.6 percent of total revenue, registering 50.6 percent growth.

TCS added 29,287 employees in fiscal 2018 as compared with 7,775 in fiscal 2018. The total number of employees at TCS reached 424,285 in March 2019.

TCS reported revenue of $5.4 billion (+8.5 percent) with operating margin of 25.1 percent, (–31 bps) in Q4 fiscal 2019.

TCS CEO Rajesh Gopinathan said: “This is the strongest revenue growth that we have had in the last fifteen quarters. Our order book is bigger than in the prior three quarters, and the deal pipeline is also robust.”

TCS generated 51.0 percent of its total revenue from North America, 2.0 percent from Latin America, 15.6 percent from UK, 14.1 percent from Continental Europe, 5.7 percent from India, 9.5 percent from Asia Pacific and 2.5 percent from MEA.

TCS has generated 31.0 percent of its total revenue from BFSI, 16.5 percent from Retail & CPG, 7.0 percent from Communication & Media, 7.2 percent from Manufacturing, 7.5 percent from Life Sciences & Healthcare, 4.7 percent from Energy & Utilities, 7.6 percent from Technology & Services and 18.5 percent from Regional Markets & Others.

Revenue growth accelerated in BFSI, crossing over into double digits (+11.6 percent vs +8.6 percent in Q3).

TCS said growth was broad-based, with most verticals showing strong growth: Life Sciences & Healthcare (+18.2 percent), Energy & Utilities (+11.3 percent), Communications & Media (+10 percent), Retail & CPG (+9.9 percent) and Manufacturing (+9.2 percent).

TCS said all major markets showed growth momentum. Growth was led by UK (+21.3 percent) and Europe (+17.5 percent). Other markets continued to grow well: North America (+9.9 percent), Asia Pacific (+11.5 percent), India (+11.3 percent) and Latin America +16.2 percent.

Recent client wins

TCS is assisting Ageas Insurance UK, to lead transformation of its IT estate including infrastructure operations, data centre, workplace and field services with a solution structured on MFDM based automation for modernization and operational efficiency.

Loblaw, Canada’s leading retailer, has deployed TCS’ ignio to transform its IT operations.  TCS is supporting Seadrill, a leading UK based deep water drilling company, to digitally transform its IT operations.

Albert Heijn, a leading European retailer, is modernizing its supply chain with intelligence, leveraging TCS’ Algo retail.

VIVAT, a leading Dutch Insurance firm, has selected TCS as the partner to transform its CRM and BPM applications based on a leading platform across all portfolios.

Rajani Baburajan