Technology outsourcing company Tata Consultancy Services (TCS) said its revenue reached $4,591 million (+5.2 percent) and net income at $923 million (+1.8 percent) in the first quarter ended June 30, 2017.
Ryan Blanchard, analyst at TBR said the growth downturn is due to a steep appreciation of the rupee against the U.S. dollar, along with tepid client spend in select markets, including the U.K., and more broadly from larger clients in banking, financial services and insurance (BFSI).
TCS added 8 clients in $1 million + band; 12 clients in $10 million + band and 1 client in $50 million + & $100 million + bands.
TCS said its digital revenue was 18.9 percent of total revenue during the first quarter (+7.6 percent q-o-q and +26 percent y-o-y).
TCS realigned its digital business, streamlining its operations into one large business unit, Business and Technology Services, which consists of 3 main practices: Cognitive Business Operations, Consulting & Service Integration and Digital Transformation Services.
“Robust volumes from major IT markets driven by client additions across revenue bands and accelerating digital adoption among customers have given us the right start to the year,” TCS CEO Rajesh Gopinathan said.
High currency volatility including rupee appreciation against the dollar resulted in Rs 650 crore loss in reported revenues.
TCS generates over 82 percent revenues from major markets like Americas, UK, Europe and Australia.
TCS said all industry verticals except Retail and BFSI grew at over 3.5 percent sequentially.
TCS has achieved revenue growth in all major markets including Europe (5.9 percent q-o-q), followed by North America and UK. Among growth markets, Latin America led the pack at (2.8 percent q-o-q) followed by India, APAC and MEA.
TCS revenue from Cognitive Business Operations rose 5 percent q-o-q, led by transformation offerings for the back-office, cloud adoption, regulatory compliance and TCS Platform based services.
TCS had 20+ engagements in IoT-based services in the areas of Connected Home, Mobility, Energy Management and Remote Monitoring.
TCS achieved double digit q-o-q growth in Cybersecurity services with demand in compliance requirements, privileged access management and cybersecurity.
TCS said its employee strength was 385,809 on consolidated basis with gross addition of 11,202 and net addition of (1,414 employees) during the quarter. The total attrition rate was 12.4 percent including BPS, with IT attrition at 11.6 percent. The percentage of women in TCS rose to an all-time high of 34.8 percent while the number of nationalities increased to 134.