TCS revenue grows 10% to $5 bn in Q1 thanks to digital and BFSI

Tata Consultancy Services (TCS), the largest software exporter from India, has reported double digit growth in revenue and net income in Q1 fiscal 2018-19 thanks to its digital deals and growth in BFSI sectors.
TCS NetherlandsMumbai-based TCS said it posted first quarter revenue of $5.051 billion (+10 percent) and net income of $1.082 billion (+17.2 percent) with operating margin of 25 percent in the first quarter of fiscal 2018-19.

Revenue grew almost 16 percent to Rs 34,261 crore in INR as the rupee depreciated about 5 percent against the U.S. dollar.

TCS said revenue from BFSI vertical grew 4.1 percent. TCS revenue from North America has increased 7 percent thanks to IT investment from BFSI and retail segments.

Digital revenue contributes 25 percent (+44.8 percent) to total revenue of TCS. Winning digital deals is the main focus of all IT services providers including Wipro, Tech Mahindra, TCS, Cognizant, Infosys, HCL Technologies, Accenture, among others.

TCS said its revenue growth accelerated in the BFSI (4.1 percent), Retail & CPG (12.7 percent) and Energy & Utilities (30.9 percent) verticals.

Among geographies, North America bounced back, growing more than 7 percent, while the U.K. (18.7 percent), Continental Europe (18.6 percent), and Asia-Pacific (10.8 percent) led the growth, TCS said in a statement.

TCS added two new enterprise clients in $100 million plus band, 13 clients in $5 million plus band.

“Our Banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum. With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future,” Rajesh Gopinathan, CEO and MD of TCS, said.

TCS said the employee base of the technology outsourcing company reached 400,875 on a consolidated basis. The percentage of women in the workforce rose further to 35.6 percent, while the total number of nationalities represented grew to 143.

The IT Services attrition rate fell by 0.1 percent in Q1 to 10.9 percent, while the total attrition rate (including BPS) fell to 11.7 percent.

“We continue with our investments in upgrading the technology skills of our people, while leveraging their contextual knowledge and domain experience,” said Ajoy Mukherjee, global head, Human Resources at TCS.

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