TCS

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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.

—RA­JESH GOPINATHAN CEO & MD

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