Tata Consultancy Services (BSE: TCS.BO, NSE: TCS.NI) reported its consolidated financial results according to US GAAP for the quarter and year ended March 31, 2006.
Highlights for Financial Year Ended March 31, 2006
. Total Income for FY06 at US $ 2.97 billion; up 36.27% Y-on-Y
. Net profit for FY06 at US $ 649.17 million; up 41.16% Y-on-Y
. Net addition of 21,140 employees during the year
. EPS for FY06 at US $ 1.33 from US $ 0.96 in FY05
. Company announces Maiden Bonus issue in 1:1 ratio
Highlights for Quarter Ended March 31, 2006
. Total Income at US $ 836.54 million up 44.43% Y-on-Y
. Net Profits at US $ 181.40 millions up 72.31% Y-on-Y
. EPS up from US $ 0.34 in Q3 to US $ 0.37 in Q4
. 89 new clients added in Q4
. 3,571 employees added in Q4
. Final Dividend of Rs 4.50 per share announced
Commenting on the company's performance in FY06, S. Ramadorai, CEO and MD, said: "An outstanding performance in Q4 has rounded-off a defining year for TCS, marked by large deals, strategic acquisitions, expansion in size and its transformation into a global corporation." He added: "As an integrated full services player with global footprint and scale, TCS is presented with valuable growth opportunities in the market place. We have the right structure and leadership team in place globally to take advantage of this tremendous opportunity".
On the back of key customer wins, strategic acquisitions as well as large, multi-year outsourcing deals, TCS is well poised to maintain its strong growth rates in the market place. Strategic acquisitions have been integrated with the company and the value of synergies will be unlocked going forward. The number of active customers of the company stood at 748 at the end of Q4 and the number of new customers added were 89.
The company plans a gross addition of 30,500 people in 2006-07 and has already made 9,200 campus offers for new recruits in 2006-07.
. A leading European Bank and a large bank in India - both have chosen TCS for implementing a Business Intelligence solution to achieve Basel II compliance.
. BANCS, TCS' core banking solution was selected by Bank of Maharashtra in India, Bank of Panshin in Taiwan and National Bank of Kuwait.
. A major European telecom service provider selects TCS for an end-to-end development and deployment of a strategic OSS platform. The deal is worth over $35m
. A leading financial services group in South Africa has engaged TCS to define their enterprise architecture and develop an integrated CRM application
. A leading European consumer products company has selected TCS for providing an end-to-end application outsourcing in a long-term contract.
Growth Engines - Highlights:
. A leading bank based in Spain selected TCS for providing transaction-based BPO services in a large, long-term contract. TCS will leverage its BPO unit Comicrom in Chile to deliver the services to the bank.
. TCS' Infrastructure practice achieved significant wins during the quarter - A leading computer peripheral manufacturer selected the practice as their partner to provide end-to-end infrastructure services globally. In another significant win, the practice will be setting up a global operations support centre for a global consumer electronics company.
. TCS' Assurance practice is enabling clients to achieve significant operational efficiency and product rigour. The practice is setting up end-to-end assurance Centres of Excellence (CoE) for key clients - A leading North American Retail Bank and a major Healthcare service provider are notable wins during the quarter.
. TCS' Engineering and Industrial Services business has seen strong traction for its diversified set of offerings across the engineering and manufacturing value chain. A UK based utilities company selected TCS to provide control systems integration services across its operations, in a 4 year multi-million pound engagement under its new asset management program. Another Energy services company in Europe has engaged the practice for their GIS program.
. TCS continued its strong growth momentum in the Enterprise Solutions area - It won major engagements during the quarter - an end-to-end Oracle eBusiness suite implementation for a global insurance major, eService CRM solution implementation for a global manufacturing company and a multi-year outsourcing deal with a leading European Consumer Products company for optimizing the investments in SAP.
Value delivered to customers
. TCS completed and launched the MCA 21 - Government of India's first mission mode e-governance program successfully. The program enables to complete service transformation of the Ministry of Company Affairs.
. TCS successfully designed and implemented the common loan origination solution for a major financial services company in North America.
. A Fortune 500 company experienced significant productivity and RoI benefits in China as a result of the successful implementation of an integrated ERP solution that automated and digitized the customer's entire manufacturing process.
. TCS set-up a global operations centre for a large North American retailer to remotely manage its distributed operations.
. TCS implemented its BANCS core banking solution in over 500 branches in Indian Bank in record time.
. For a global Financial Services major, TCS completed a strategy assignment leading to the outsourcing of Business Intelligence applications to improve productivity and predictability.
Human Resources Update
. At the end of FY06, TCS became the first IT company in India to employ more than 60,000 professionals, with a total strength of 62,832 from 53 different nationalities.
. Non Indian nationals formed 6.5% of the total associate base and 24% are women associates.
. 51% of the company's associates have more than 3 year experience.
. There was a gross addition of 27,377 (net addition 21,140) associates during the financial year.
. The net addition during the quarter was 3,571 associates and TCS continued to maintain its annualized attrition under 10% (9.9%).