MUMBAI:
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 and financial year ending March 31, 2020.
Rajesh Gopinathan, Chief Executive Officer and Managing Director, said: “Amidst the tumult of the last few weeks, our priority has been to safeguard the health and well-being of our employees while continuing to support our customers’ mission critical activities globally. The agility, resilience and adaptability of our operating model were put to the test, and it has emerged stronger and more
proven than ever before. This has further strengthened our customers’ confidence in TCS. Many of them have reached out to us to express their appreciation, and gratitude for how our teams went above and beyond to help them keep their businesses running under very difficult circumstances. I want to thank all the TCSers who showed immense grit, resolve and ingenuity, in the true spirit of TCS, to make this possible.”
He added: “The pandemic completely reversed the positive momentum that we had started seeing in some of our biggest verticals in the first half of the quarter. On the positive side, we had very strong deal closures during the quarter. In fact, our order book this quarter is the largest ever, from the time we started reporting the metric. Organizations across the world are realizing the need for operational and systems resilience. Many of the large deals we signed during the quarter address precisely that need. They are core transformation programs that leverage the power of technology to make our customers’ operations leaner, faster, and more resilient.”
N Ganapathy Subramaniam, Chief Operating Officer & Executive Director, said: “Covid 19 presented us an operational challenge of scale, speed and complexity. Although we have been the pioneers of the Location Independent Agile model, switching a long-established infrastructure model of an organization of over 448,000 employees in a matter of days is pushing the boundaries of location independence as well as agility to their limits. It also required recalibrating the project management methodology and the security posture.
The outcome was our Secure Borderless Workspaces framework, which has now enabled close to 90% of our employees to work remotely and securely. Despite the lockdowns, I am pleased that our customers continue to experience the same energy and delivery certainty from TCS as before. All in all, we managed to not only maintain all essential services for our customers, but also continue the journey in their growth and transformation programs. As for the operating metrics, I am particularly happy with the robust client metrics this quarter, with strong additions across most revenue buckets.”
V Ramakrishnan, Chief Financial Officer, said: “The speed with which we were able to switch from a highly centralized delivery to a fully distributed model is also on account of the investments we have been making over the years in building an agile and resilient core. We have digitized virtually all our processes and invested in cutting edge infrastructure and collaboration tools to support our Location Independent Agile delivery model and Secure Borderless Workspaces. As we enter a difficult and uncertain period, our strong balance sheet, best-in-class profitability and the inherent resilience of our business model position us well to navigate the challenges ahead and gain share.”
Q4 Segment Highlights
Industries: Revenue growth was led by Life Sciences & Healthcare (+16.2%), Communications & Media (+9.3%) and Manufacturing (+7%). Retail & CPG grew +4.2% and Technology & Services grew +3.5%. BFSI revenue declined 1.3%.
Markets: Growth was led by Europe (+11.9%) and UK (+5.4), Latin America grew +3.9%, Asia Pacific grew +3.5% and MEA grew +1.3%. North America grew +0.2% while India declined 1.9%.
Services:
Consulting & Services Integration: Enterprise Agility, as a key enabler of enterprise-wide operating model transformation goals, enabled several strategic wins. Amidst the current crisis, C&SI has been helping customers re-orient supply chains to ensure resilience and meet critical needs. The other driver of growth was engagements around TCS’ Finance Transformation offerings.
Digital Transformation Services: MFDM™ and Bringing Life to Things™ frameworks continued to gain mindshare and powered multiple transformational engagements. Engineering, Cloud, Cyber Security and Enterprise Intelligent Automation services led growth during the quarter.
Cognitive Business Operations: TCS’ innovations around AI/ML enabled operations, scaling of Agile DevOps, and next-generation workplace solutions which provide multi-channel, personalized and integrated experience for users were growth drivers. Other growth areas included offerings around cognitive HR, digital F&A and digital customer experience.
Customer Accolades
“…Despite the huge disruption to your working life, your sense of professionalism, dedication, determination, perseverance and above all, your resilience has not at all faltered. All the TCS delivery updates I am getting show all critical projects and activities continue to be met to expectations. Being able to deliver to TCS’ mantra of Experience Certainty is tough enough during steady state times, let alone being able to do the same at this point when the world is in crisis.
Thanks to your individual efforts, TCS is the one silver lining in this dark cloud… I can’t help but feel just how privileged and lucky I am, overseeing a partnership of high performing and committed individuals from TCS. Once again, thank you for all you do…”
– Life Sciences Client
“As we all go through ever evolving COVID situation impacting both our personal and professional lives, I see tremendous amount of resilience and perseverance by your staff across the support chain to ensure stability in the IT services offered. I would like to take a moment to recognize and thank all efforts being put in at various levels of your organization in helping deliver seamless AOMS services. Every ticket resolved, request fulfilled, change implemented and project delivered is directly contributing to the value delivered by [Client Name]. …Thank you! AOMS Team”
– Energy Client
“TCS team has provided superior support in creating complex workflows with a quick turnaround time to deliver in a few hours. This truly epitomized the [Client Name] value of `Working in Teams’ and `Ensuring Quality’”
– Life Sciences Client
“…appreciate your hard work in the new working ways. Big THANK YOU to ALL, as customer did not even notice the change. Keep up the good work.”
– Large Retail Client
“I just wanted to let you know that the TCS guys have been absolutely brilliant in helping us respond to Covid-19 changes in MSD really quickly. They are just fantastic!”
– Professional Services Client
Key Highlights
Walgreens Boots Alliance, a global leader in retail and wholesale pharmacy, expanded its strategic partnership with TCS with a multi-year contract. In the new operating model for IT Run and Operational services, TCS will provide managed services using an approach that blends artificial intelligence, machine learning and advanced software engineering to enhance operational resilience and boost productivity.
Chosen by Vaillant, a leading German Manufacturer in the field of heating and ventilation technology, as a strategic business partner for its multi-year growth and transformation program to ensure digital readiness, harmonized data and processes on global scale and future growth based on new customer centric business models. TCS was selected for its global capabilities and track record in delivering large and complex business transformation engagements in location independent agile methodology.
Large German Retailer selected TCS as a Strategic Application Development Management (ADM) Partner for analytics and mobility platforms and extended its strategic infrastructure services partnership contract, enabling cognitive capabilities thru TCS’ ignio™ platform.
A global leader in lithographic equipment technology further strengthened its partnership, and entrusted TCS with digital transformation of end-to-end operations including application, infrastructure and workplace services powered by ignio AIOps.
Engaged by a US-based global fragrance manufacturer and supplier, to transform its IT infrastructure, security services and user experience for its users. TCS will deliver Digital Workplace (DWS) services with a Machine First™ approach powered by ignio and its unparalleled global service delivery capability for reduced operational and technology risk, greater efficiency, improved scalability and a sharper customer focus. TCS will also provide managed security services, identity management and vulnerability management.
Chosen by a UK based blockchain-enabled insurance platform, as its strategic cloud and infrastructure partner, standardizing on TCS Cloud Exponence Platform. TCS will also set up a leading Security Information and Event Management solution and a Security Operations Centre to enable intelligent threat detection, improved forecast accuracy and ranking of cyber security threats, for timely response.
Engaged by a global piping system manufacturer for a business transformation program of its digital core ecosystem leveraging a leading digital ERP, that will enable them to deploy globally harmonized and integrated processes to deliver a superior customer experience, improved time to market and operational excellence.
