TCS Reports revenue growth of 11.7% for FY 2018

Q4 Incremental Revenue of $185 Mn; Highest ever in a fourth quarter
FY18 Q4 Revenue at $4.97 billion, up 3.9% Q-on-Q and 11.7% Y-on-Y
FY18 Annual revenue at $19.09 billion; up 8.6%
Industry-defining transformational deals drive growth momentum
Board of Directors recommend 1:1 bonus share issue
Digital revenue crosses $4 billion, grows 35% Y-o-Y
Attrition continues to trend down; at 11%, lowest in the industry
TCS Brand Value crosses $10Bn; fastest growing brand in the industry globally

MUMBAI, IndiaApril 19, 2018  :  Tata Consultancy Services (TCS), the leading IT services, consulting and business solutions firm reported its consolidated financial results according to IFRS and Ind AS, for the quarter and the financial year ended as of March 31, 2018.

Commenting on the Q4 performance, Rajesh Gopinathan, CEO and MD, said: “Strong demand in digital across all industry verticals and large transformational deal wins have made this one of our best fourth quarters in recent years. The strong exit allows us to start the new fiscal on a confident note.”

Mr Gopinathan added: “As customers move forward in their Business 4.0 journeys, TCS is helping them leverage digital technologies to drive their growth and transformation agendas. The multiple mega-deals that we won this year are evidence that TCS is their preferred partner in such strategically important initiatives. By pioneering methodologies like the Machine First Delivery Model (MFDM) and Location Independent Agile, we are upholding the spirit of innovation and leading change that has been a hallmark of TCS’ fifty year history.”

N. Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: “We are executing on our Business 4.0 strategy and that is paying off very well. Our participation in our customers’ digital spending is expanding ahead of the industry. Six of our industry verticals grew above the company average in FY 18, four of them growing double digits. Strong deal wins and a good pipeline positions us very well in the new fiscal.”

V. Ramakrishnan, Chief Financial Officer, said: “Disciplined execution delivered an all-time high cash conversion in Q4. We stayed geared for higher growth, and continued to invest in our people and in the business. With revenue growth improving, and our digital business scaling up, we expect our margins to remain in a stable range.”

Q4 Segment Highlights :

Industries :  All industry verticals – with the exception of BFSI – grew above company average, with three verticals growing in double digits Y-o-Y. Growth was led by the Energy & Utilities vertical (+33.7%), Travel & Hospitality (+25.4%) and Life Sciences & Healthcare (+12.6%).

Markets :  On a Y-o-Y basis, Continental Europe (+19.1%), UK (+10.7%) and Asia Pacific (+8.6%) led the growth. North America grew 4.9% Y-o-Y.

Services  : Greater adoption of digital technologies by customers resulted in several large, multi-practice integrated deal wins. Digital engagements contributed 23.8% of revenue in Q4, a growth of 42.8% Y-o-Y.

  • Consulting & Services Integration: Saw strong growth, winning large multi-practice deals of strategic significance for customers, as it continues to secure our position as a trusted advisor to our clients.
  • Digital Transformation Services: All the underlying service practices saw good demand in Q4, particularly in cloud migration, application modernization and enterprise application services. TCS’ Machine First Delivery Model (MFDM™) saw strong adoption in IT Ops and Process Automation powered by ignio™ and third party solutions, with over 20 wins. Industry-specific advanced analytics offerings, backed by our assets and contextual knowledge, continued to deliver high impact business outcomes for our customers. Cyber Security Services saw strong double digit growth led by Identity & Access Management, IoT Security, and Managed Security Services. Customer priorities of user experience and product and service innovation powered strong growth in Interactive Services.
  • Cognitive Business Operations: This quarter saw high interest for our integrated offerings leveraging cognitive technologies, based on an ‘Insights-as-a-Service’ model.
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