TCS
Revenue grew almost four-fold, from ` 30,029 crore in FY 2010 to ` 117,966 crore or $17.58 billion in FY 2017, a compounded annual growth rate of 21.6%. The company says that the operating profit margin – the highest in the industry – stayed stable in the 26-28% band. Overall pricing for the year was stable with realizations flattish on a constant currency basis.
TCS also saw very good traction with customers: clients in $50M+ band increased by 11; clients in $20M+ band by 17; and clients in $10M+ band increased by 12.
The customer-centric vision with far-sighted investments in emerging technologies allowed TCS to gain a leadership position in the Digital space, positioning the company for the future. In FY 2017, TCS delivered a steady performance, with a revenue of ` 117,966 crore, growing 8.5% over the prior year. TCS continues to be the most profitable company in the IT services industry, with a net profit of ` 26,289 crore, which is a net margin of 22.3%. In terms of markets, Continental Europe, Latin America, and Middle EastAfrica grew in the mid-teens, while the other geographies grew in the 6% to 10% range on a constant currency basis. All markets grew in FY17 in constant currency terms. Among major markets, Europe grew in double digits 13.6% and crossed $2 billion milestone in revenues. North America grew 7.6% and the UK grew 6.1%. Among growth markets, MEA grew 14.8% and Latin America grew 14.1% led the way while India grew at 10.1% and APAC at 5.7%
In terms of industries, TCS saw broad based growth across the spectrum. From a segmental point of view, revenue from the Banking, Financial Services, and Insurance industry grew close to the company average. With the exception of Retail and HiTech, all the other industry verticals grew in double digits over the prior year. The company says that its investments in geographies are paying off very handsomely, with all regions reporting considerable growth on a full year basis.
Among service lines, Enterprise Solutions and Consulting crossed the $3 billion mark and Business Process Services crossed the $2 billion revenue milestones respectively was driven by IoT and Industrial Internet solutions. Meanwhile engineering services led the way with 17.4% growth during the year while Infrastructure Services grew at 16% followed by Assurance services with 12.5% growth and BPS with 10.4%.
Digital technologies account for most of the net new IT spending by customers today and TCS is emerging as the preferred partner for many large enterprises in their Digital transformation journeys. Currently, over 55% of TCS clients are engaged with Digital Services, and that percentage is much higher among larger clients.
Digital revenue crossed the $3 Bn milestone this year, making up 16.7% of revenue and growing 28.8% over the prior year.