Business 4.0 powers a strong finish to FY18

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, April 19, 2018: Tata Consultancy Services (BSE: 532540, NSE: 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 on March 31, 2018.

FY 2018 Highlights

Q4 FY 2018 Highlights

Incremental revenue of $1.51 billion, highest in the last three years
Operating Income at $4.73 billion
Operating Margin at 24.8%
Healthy Client Revenue Metrics:
- Clients in $100M+ band increased by 3
- Clients in $50M+ band increased by 13
- Clients in $20M+ band increased by 17
- Clients in $10M+ band increased by 40
Employee headcount: 394,998
Attrition rate: 11% in IT services
Over $4.1 billion of cash returned to shareholders in dividends and buyback
EPS at $2.08, up 4.7% Y-o-Y

23.8% of revenue from digital; up 42.8% Y-o-Y
Operating Income at $1.26 billion
Operating Margin at 25.4%
Highest ever cash conversion: Operating Cash Flow 121.7% of Net Profit
EPS at $ 0.56, up 11.1% Y-o-Y
Total Dividend for FY18 at Rs 50 per share including Rs 29 per share Final Dividend (proposed).

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.”

Rajesh 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.”

About Tata Consultancy Services Ltd (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for over 56 years. Its consulting-led, cognitive powered, portfolio of business, technology and engineering services and solutions is delivered through its unique Location Independent Agile™ delivery model, recognized as a benchmark of excellence in software development.

A part of the Tata group, India's largest multinational business group, TCS has over 601,000 of the world’s best-trained consultants in 55 countries. The company generated consolidated revenues of US $29 billion in the fiscal year ended March 31, 2024, and is listed on the BSE and the NSE in India. TCS' proactive stance on climate change and award-winning work with communities across the world have earned it a place in leading sustainability indices such as the MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit www.tcs.com

Follow TCS on Twitter at @TCS_News.

TCS media contacts

Corporate
Communications & India

corporate.communications@tcs.com

saxena.kritika@tcs.com

+91 22 6778 9999

kimberly.solomon@tcs.com

+91 22 67789098

Asia Pacific

y.tham@tcs.com

+65 9720 9005

Canada

tiffany.fisher@tcs.com

+1 416 456 7650

Latin America

alma.leal@tcs.com

+521 55 2095 6098

Australia and New Zealand

kelly.ryan@tcs.com

+61 422 989 682

Europe

joost.galema@tcs.com

+31 615 903387

Japan

douglas.foote@tcs.com

+81 80 2115 0989

Middle East & Africa

pragya.priyadarshini@tcs.com

+971 528656700

UK

t.doherty@tcs.com

+44(0)7759396160

USA

james.sciales@tcs.com

+1 917 981 7651

Contact

TCS is here to make a difference through technology.

We’re in it for good, driving positive change for the benefit of all.

Extraordinary expertise leads to remarkable results.

Want to be a global change-maker? Join our team.

Find the latest news about TCS in our Newsroom

Recent Press releases

Recent News

Recent recognitions

Upcoming events

TCS works hand in hand with world-leading investors.