Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPS, infrastructure, engineering and assurance services. A part of the Tata group, India’s largest industrial conglomerate, TCS has over 389,000 of the world’s best-trained consultants in 45 countries. The company generated consolidated revenues of US $17.6 bn for year ended March 31, 2017.
Yash Ved, Sr. Correspondent from NewsBarons provides you the highlights of a media interaction with Rajesh Gopinath, MD and CEO – TCS, where Mr. Gopinath informed “The turnaround will happen in retail and BFSI segment in next couple of quarters.”
NB: How was the quarter as a whole?
Rajesh: The company has delivered another strong Q2 driven by good demand across multiple industry verticals. The revenue grew by 3.2% Q-o-Q. The segment growth was led by Europe, APAC and Latin America. The company added 28 clients in $1 million plus band. The Operating Margin was at 25.1%, with an expansion of 1.7% Q-o-Q.
Earlier there has been threat from Fintech space, but it has added advantage for us.
NB: What is your outlook for the coming quarters?
Rajesh: We expect few deals in Insurance space. Agile, Cloud and automation are our pillars of business. The turnaround will happen in retail and BFSI segment in next couple of quarters.
NB: How was the deal pipeline in Q2?
Rajesh: The company bagged large deal in this quarter, a good pipeline, and bottoming out of the Retail sector softness positions us well.
NB: Brief us about your Segment Highlights for Q2?
Rajesh: The company has delivered Strong revenue growth across verticals in
the September quarter. With the exception of Retail and CMI, all industry verticals grew above the company average, led by Travel & Hospitality (up 8% Q-o-Q), Energy & Utilities (up 7.2% Q-o-Q) and Life Sciences & Healthcare (up 3.6% Q-o-Q). On a year on year basis, all industry verticals – with the exception of BFSI and Retail –grew above 9.5%.
NB: What was the digital revenue in this quarter?
Rajesh: We continue to gain share in the Digital spend of our customers, evident in our industry-leading Digital growth in Q2.The Digital revenue was at 19.7%.
NB: What is your current employee strength in Q2?
Rajesh: We continue to invest in talent. The total employee strength at the
end of Q2 stood at 389,213 on a consolidated basis, with gross addition of 15,868 employees and net addition of 3,404 employees during the quarter. Overseas recruitment continues apace, with 3,725 employees recruited outside India, bringing the total to 6,979 in the first half of the fiscal year. The IT Attrition rate was down further by 0.3% to 11.3%.