TCS Q3 profit grows 24.1%; digital grows at 52.7%

Tata Consultancy Services Q3 revenue for the period ending December 31, 2018 stood at Rs. 37,338 crore, a growth of 20.8% YoY whereas net income stood at Rs. 8,105 crore a growth of 24.1% YoY.
TCS digital revenue stands at 30.1% of total revenue and has grown by 52.7% YoY. 
 
Commenting on the Q3 performance, Rajesh Gopinathan, Chief Executive Officer and Managing Director said, “The strong client metrics, industry leading growth in digital services, a very strong order book and deal pipeline are all validations that customers recognize our differentiated capabilities and are picking us for their growth and transformation programs.”
 
“On a secular basis, as large segments of the economy go through churn driven by digital disruption, enterprises are responding with technology-powered strategies – as in algorithmic retailing or connected cars – creating a huge opportunity for services providers like us. Our investments in research and innovation, our deep domain and contextual knowledge, intellectual property and our collaborative approach to co-innovation, have been key to our participation in this opportunity. This quarter, we launched a new brand, TCS Pace embodying these capabilities and offering our customers a line of sight to success in a Business 4.0 world,” added Gopinathan. 
 
Revenue growth continued to accelerate in BFSI (+8.6% vs +6.1% in Q2). Growth was led by Energy Utilities (+18.1%), Life Sciences & Healthcare (+15.7%), Communications & Media (+10.8%) and Retail & CPG (+10.5%).
 
Revenue growth accelerated in all the geographies compared to Q2. Growth was led by UK (+25.1%), Europe (+17.6%), and Asia Pacific (+12.6%). North America grew 8.2%, India grew 9.7% and Latin America grew 7.6%.
 
The Digital Transformation Services had an exceptionally strong quarter thanks to IoT, TCS Interactive and Cyber Security. IoT saw strong growth and deal wins around our digital twin – fleet management and energy management solutions.
 
TCS Interactive saw significant off take for digital content,digital channels and digital commerce services, led by opportunities around simplification and automation of MarTech stacks, seamless integration across the marketing ecosystem, and marketing analytics.
 
Cyber Security services saw strong growth around managed security services,identity and access management and governance risk and compliance. Cloud services grew well in Q3, benefiting from enterprise scale cloud adoption and its linkages to innovation. TCS’ cloud migration factory and estate modernization offerings saw significant traction. TCS Enterprise Cloud enhanced its global footprint by launching centers in Australia and Canada.
 
Cognitive Business Operations saw strong growth powered by MFDM and cognitive services. TCS saw strong demand across M&A, digital infrastructure, cognitive business command center, enterprise business processes and intelligent process automation.
 
TCS was chosen by a large German investment bank and financial services company to conceptualize and implement the digital transformation plan for ensuring service continuity and identifying new revenue channels in compliance with regulatory directives, leveraging cloud, micro-services, analytics and cyber security capabilities. The company was selected by a large Brazilian bank as the primary vendor for digital transformation and innovation leveraging TCS expertise in digital channels, user experience and design capabilities.
 
Engaged by a leading Malaysian oil and gas company as a consulting partner to design and deliver an enterprise visualisation platform. TCS will also offer digital learning-as-a-Service for managing organizational change and employee alignment to the transformation initiative.
 
Chosen by a leading Canadian insurer for its platform consolidation and digital transformation for 500,000 policies of closed book business, delivering transformational value, powered by the TCS BaNCS platform ecosystem.
 
Selected by a global leader in pool equipment and solutions for creating IoT-enabled pool equipment services that will enhance customer satisfaction and enable new revenue streams. Selected by a leading North American telecom services provider to expand the capabilities of their IoT platform with new state of art features for managing connectivity across IoT devices by implementing a ThingSpace Connectivity Management Solution.
 
Selected by a travel commerce platform as a strategic partner to enable end-customers to acquire and trade their travel assets such as hotel rooms and airline seats across multiple travel service providers through a interoperable blockchain platform.
 
NMBS/SNCB (Belgian Rail) selected TCS as a long-term, strategic partner for its SPRITE (Strategic Partner for Rail IT Engagement) program, a key rail transformation journey encompassing innovative digital technologies and state of the art technological services to enhance customer experience.
 
Selected by a North American healthcare major to implement ignio to drive a Machine First transformation to provide a seamless experience to business users and improve business metrics across the entire healthcare value chain.
 
Elisa, a market-leading Nordics-based telecommunications, ICT and digital services provider, extended its strategic partnership with TCS to transform and grow its services by going agile in a machine first digital world. Chosen by an Australian broadband service provider as its partner in the areas of network planning, design and operations, and to drive a Machine First transformation.
 
Selected by an industry-leading American technology company as a strategic partner to improve the time-to-market across its products leveraging TCS Quality Engineering Transformation platforms.

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