| Highlights for Quarter Ended June 30, 2007 (Indian GAAP) |
| · Q-o-Q: Rupee Revenues up 0.8%; Dollar Revenues up 8% · Q-on-Q: Rupee Net Profits up 0.7%; Dollar Net Profits up 8% · EPS at Rs 12.29 in Q1 · 54 new clients added in Q1 · 8,706 employees joined the company in Q1 · Attrition at 11.5% LTM (including BPO) · Dividend of Rs 3 per share announced · TCS Financial Solutions "� SBU for financial products - launched · New GDC in Mexico launched |
| CEO and MD of TCS, S. Ramadorai said: "This quarter has validated the strength of our business model and our ability to respond to the external financial environment and drive growth under challenging circumstances. Despite factoring in wage hikes and an appreciating rupee, we have maintained profitability by great execution, demand creation and strong financial management." He added: "Our focus on delivery excellence continues to provide the experience of certainty to our customers." |
| TCS continued to drive its pro-active program of long-term financial management with a strong focus on countering the impact of the appreciating Indian rupee against the US dollar and other major currencies. As at the end of Q1, TCS had about $2.5 billion outstanding in hedges. The increase in the wage bill in Q1 has been largely neutralized through an enterprise-wide productivity improvement program and putting in measures to control costs. |
| S. Mahalingam, Chief Financial Officer, said: "Though our margins were impacted by the drastic rupee appreciation as well as planned wage increases during Q1, we have been successful in mitigating these factors through productivity increases, cost management as well as hedging gains. This has helped sustain margins at the net level despite a challenging external environment." He added: "Compared to a year ago, the margin position coming into this financial year remains stronger and we will continue to manage this aspect of our business throughout the year". |
| In dollar terms, TCS revenues grew by 8% during Q1 driven by volume increases with an upward pricing bias, with banking, financial services, telecom and life sciences verticals performing strongly. Among service lines, Assurance services and asset leveraged solutions continue to grow faster than the average company growth rate. |
| "Our focus on key accounts continues to yield positive results with significant movement of clients to higher revenue bands. TCS now has 6 customers with annual billings of over $100m," said N. Chandrasekaran, Head, Global Sales and Operations. "In terms of customer demand, we continue to see strong demand in the banking, financial services, telecom and retail sectors for our full services play including consulting, BPO and infrastructure services. |
| "Our brand-building campaign based around the concept of certainty in IT services continues to increase awareness of our brand worldwide and position us as a leading IT service provider globally, helping us gain mindshare from our customers and potential employees," said Phiroz Vandrevala, Head, Global Corporate Affairs. |
| "Our recruitment engine continues to fire on all cylinders. To ensure a steady flow of recruits, we have hired larger number of experienced professionals in Q1, which is traditionally a slow period for inducting freshers," said S. Padmanabhan, global head of human resources. "TCS continues to have the lowest attrition rate at just 11.5% in the industry. Our ability to nurture talent, upgrade skill levels and match employee aspirations helps our retention rates and delivers certainty to our customers and employees. |
| TCS' attrition rate in Q1 was 11.5% overall with 11% attrition rate in the IT services business and 16.7% attrition rate in BPO. At the end of Q1, the total employee strength of the company was 94,902, from 67 nationalities. Foreign nationals formed 9.4% of the total employee base and 27% were women. |
| There was a gross addition of 8,706 employees of which 2,898 were trainees and 4,795 were experienced professionals in India and 1,013 employees in overseas subsidiaries and branches in Q1. The net addition was 5,512 employees. |
| (INR numbers of Q1 FY08 are converted to USD on convenience translation basis @ Rupees 40.710 per USD) 1 BIG WINS |
| "� Provide a comprehensive range of telecom services to enable complete transformation of existing systems and processes to the next generation convergent billing system in a $ 100M+ deal for a leading Asian telco. "� Engaged by a North American Airline company as a strategic partner for providing IT, BPO and Infrastructure services in full services win worth $30+M. "� Provide BPO services in the areas of Biostatistics, Drug Safety, Clinical Programming and Clinical Data Management, for a European pharma major with global operations in a $20+M deal "� Chosen by a large US based Utility company, as their strategic partner for IT services. "� Provide application development and support services for a leading North American Financial Services company "� Providing ADM and Infrastructure services in a $25 M deal for a large UK-based airline "� A large Retail Bank in the UK has engaged TCS for its strategic initiative to enhance customer experience. "� Creating a common platform to bring efficiencies in its global operations for an Europe-based insurance company. |
| About Tata Consultancy Services: |
| Tata Consultancy Services is an IT services, business solutions and outsourcing organization that delivers real results to global businesses, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development. |
| A part of the Tata Group, India's largest industrial conglomerate, TCS has over 94,000 of the world's best trained IT consultants in 47 countries. The Company generated consolidated revenues of US $4.3 billion for fiscal year ended 31 March, 2007 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com. |
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