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MarketScreener Homepage  >  Equities  >  NSE India Stock Exchange  >  Tata Consultancy Services    TCS   INE467B01029

TATA CONSULTANCY SERVICES

(TCS)
  Report
Delayed Quote. Delayed NSE India Stock Exchange - 01/15 06:14:09 am
3233.35 INR   -0.53%
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Tata Consultancy Services : TCS Demonstrates Operational Resilience While Positioning for Growth Recovery

07/10/2020 | 08:29am EST

TCS Demonstrates Operational Resilience While Positioning for Growth Recovery.

Q1 CC Revenue Degrows 6.3% YoY

Life Sciences (+13.8% YoY) Shines Amid Widespread Declines

Industry-leading Operating Margin: 23.6%

Q1 Total Contract Value: $6.9 Bn

Tata Consultancy Services (BSE: 532540, NSE: TCS), the leading global IT services, consulting and business solutions organization, reported its consolidated financial results according to Ind AS and IFRS, for the quarter ending June 30, 2020.

Highlights of the Quarter Ended June 30, 2020

Revenue at $5.059 Bn, -7.8% YoY

Constant Currency revenue growth: -6.3% YoY

Net Income at $925 Mn, -20.8% YoY

Operating Margin at 23.6%; Net Margin at 18.3%

Strong Cash Conversion: Operating Cash Flow at 132.6% of Net Income

Consolidated headcount: 443,676 | Women in the workforce: 36.2%

353K+ employees trained in new technologies

Industry-leading talent retention: IT Services attrition rate at 11.1% LTM

Dividend per share: ' 5.00

Record date 17/07/2020; Payment date 31/07/2020

Commenting on the Q1 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director, said,'The revenue impact of the pandemic played out broadly along the lines we had anticipated at the start of the quarter. It affected all verticals, with the exception of Life Sciences and Healthcare, with varying levels of impact. We believe it has bottomed out, and we should now start tracing our path to growth.'

He added, 'After an initial period of disruption, customers have now stabilized their operations and are now embarking on new beginnings to adapt and thrive in a post-pandemic world. We are seeing many customers focus on front-end transformation, resulting in significant traction for our products and services. The other big investment themes are around driving operational resilience, adaptability and optimization. We signed several large core transformation programs encompassing operations, applications, cloud and cybersecurity. Our Machine First approach, delivered using the Secure Borderless Workspaces model is helping us win such opportunities. Very encouragingly, we saw customers launch new business transformation programs or restart deferred programs during the quarter. This is indicative of business confidence returning in pockets.'

N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said,'The location-independent way of working is gaining traction. Our customers are quite comfortable integrating the remote workforce, using new collaborative technologies to get work done. Our Secure Borderless Workspaces model has been institutionalized. We have been able to seamlessly adapt and extend it to prospect for new business, sell, contract and execute programs.'

He added, 'The resilience and adaptability that we have shown in supporting all our customers over the last three months bodes well for our relative competitiveness going forward. Despite the continued uncertainty and weakness in all major economies, we have had very healthy deal closures and a strong pipeline. We will stay focused on helping our customers overcome the current challenges and prepare for the growth ahead.'

V Ramakrishnan, Chief Financial Officer, said, 'We have taken a supportive approach to employees and vendors, and used other efficiency levers to limit the impact of the sharp revenue decline during the quarter, and still delivered an industry-leading operating margin. Disciplined execution resulted in superior cash conversion and a strong cash balance that positions us very well to weather the downturn.'

IFRS Financial Statements

Consolidated Statements of Comprehensive Income

For the three-month periods ended Jun 30, 2019 and Jun 30, 2020

(In millions of USD, except per share data)

Three-month period ended

Jun 30, 2019

Three-month period ended

Jun 30, 2020

Revenue

5,485

5,059

Cost of revenue

3,265

3,065

Gross margin

2,220

1,994

SG & A expenses

895

800

Operating income

1,325

1,194

Other income (expense), net

203

60

Income before income taxes

1,528

1,254

Income taxes

357

324

Income after income taxes

1,171

930

Minority interest

3

5

Net income

1,168

925

Earnings per share in $

0.31

0.25

Consolidated Statements of Financial Position

As of Mar 31, 2020, and Jun 30, 2020

(In millions of USD)

As of March 31, 2020

As of June 30, 2020

Assets

Property and equipment

1,583

1,575

Right-of-use Assets

1,060

1,061

Intangible assets and Goodwill

547

556

Accounts Receivable

4,057

4,024

Unbilled Revenues

1,398

1,259

Investments

3,494

3,936

Cash and Cash equivalents

1,146

1,291

Other current assets

1,976

2,369

Other non current assets

1,048

987

Total Assets

16,309

17,058

Shareholders' Funds

11,433

12,154

Other current liabilities

3,587

3,623

Other non-current liabilities

1,204

1,195

Minority Interest

85

86

Total Liabilities

16,309

17,058

About Tata Consultancy Services Ltd (TCS)

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 AgileTM 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 443,000 of the world's best-trained consultants in 46 countries. The company generated consolidated revenues of US $22 billion in the fiscal year ended March 31, 2020, 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 Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com.

To stay up-to-date on TCS global news, follow @TCS_News.

For more information please contact:

Media: +91 22 6778 9999

Investor Relations: 91 22 6778 9999

arushie.sinha@tcs.com

Kedar.shirali@tcs.com

(C) 2020 Electronic News Publishing, source ENP Newswire

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Financials
Sales 2021 1 644 B 22 470 M 22 470 M
Net income 2021 329 B 4 501 M 4 501 M
Net cash 2021 264 B 3 614 M 3 614 M
P/E ratio 2021 36,7x
Yield 2021 1,46%
Capitalization 11 960 B 164 B 163 B
EV / Sales 2021 7,11x
EV / Sales 2022 6,22x
Nbr of Employees 469 261
Free-Float 26,9%
Chart TATA CONSULTANCY SERVICES
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Tata Consultancy Services Technical Analysis Chart | TCS | INE467B01029 | MarketScreener
Technical analysis trends TATA CONSULTANCY SERVICES
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 40
Average target price 3 259,03 INR
Last Close Price 3 233,35 INR
Spread / Highest target 29,2%
Spread / Average Target 0,79%
Spread / Lowest Target -41,9%
EPS Revisions
Managers and Directors
NameTitle
Rajesh Gopinathan CEO, MD & Non-Independent Executive Director
Natarajan Chandrasekaran Non-Executive Chairman
N. Ganapathy Subramaniam COO & Non-Independent Executive Director
V. Ramakrishnan Chief Financial Officer
K. Ananth Krishnan Chief Technology Officer
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