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India – Tata Consultancy Services Q4 revenue and profits climb

15 April 2019

India-based Tata Consultancy Services reported its consolidated financial results Friday for the fourth quarter ended 31 March 2019 with revenue up 12.7% in constant currency to USD 5.4 billion.

($ millions) Q4 2018 Q4 2017 Change Constant Currency
Revenue 5,397 4,972 8.5% 12.7%
Gross Profit 2,253 2,101 7.2% N/A
Operating Income 1,354 1,263 7.2% N/A
Net Income 1,154 1,070 7.8% N/A

During the quarter, the group said all major markets showed strong growth momentum. Growth was led by the UK (21.3%) and Europe (17.5%). Other markets continued to grow well including North America (9.9%), Asia Pacific (11.5%), India (11.3%) and Latin America (16.2%).

Among industry segments, revenue growth continued to accelerate in BFSI (Banking, financial services and insurance) crossing over into double digits (+11.6%). Growth was broad-based, with most verticals showing strong growth: Life Sciences & Healthcare (18.2%), Energy & Utilities (11.3%), Communications & Media (10%), Retail & CPG (Consumer packaged goods) (9.9%) and Manufacturing (9.2%).

In November 2018,  Tata Consultancy Services acquired the business of BridgePoint Group, LLC, a US-based management consulting firm catering to the financial services industry, and specialising in retirement services. In the same month, the company also acquired W12 Studios, a digital design studio based in London.

The company said it would remain open to more acquisitions in the future.

Rajesh Gopinathan, Chief Executive Officer and Managing Director, commented on the results, “This is the strongest revenue growth that we have had in the last fifteen quarters. Our order book is bigger than in the prior three quarters, and the deal pipeline is also robust. Despite macro uncertainties ahead, our strong exit positions us very well for the new fiscal.”

Tata Consultancy Services also published full year results.

($ millions) FY 2018 FY 2017 Change Constant Currency
Revenue 20,913 19,089 9.5% 11.4%
Gross Profit 8,753 8,035 8.9% N/A
Operating Income 5,347 4,730 13.0% N/A
Net Income 4,494 4,005 12.2% N/A

In trading on Friday, Tata Consultancy Services shares traded at INR 2,014.50 (USD 29.08), down 0.25% on the day. Based on its current share price the company has a market value of INR 7.56 trillion (USD 109.1 billion).

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