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Back to all TCS Financial Solutions announcements

Q3 revenues for Tata Consultancy Services cross $1 billion milestone

Y-T-D revenues cross $3 billion;
Net Profit at $250m on back of large wins and ramp-ups

• Revenues at Rs 48,605 million ($ 1.1 billion) up 40.78% Y-on-Y
• Revenues grew 12.3% growth in dollar terms Q-o-Q
• Net Income at Rs 11,047 million ($ 250 million) up 47.25% Y-on-Y
• 5 large engagements concluded - $100 M (2 deals) & $50 M (3 deals)

Tata Consultancy Services (BSE: TCS.BO, NSE: TCS.NS) reported its consolidated financial results according to US GAAP for the quarter ended December 31, 2006.

Highlights for Quarter Ended December 31, 2006

• Total Revenues at Rs 48,605 million ($1.1 billion) up by 8.44% Q-on-Q
• Net Income at Rs 11,047 ($250 million) up by 11.41% Q-on-Q
• EPS up from Rs 10.13 in Q2 to Rs. 11.29 ($ 0.26 ) in Q3
• 55 new clients added in Q3
• 7,835 employees joined the company in Q3
• Dividend of Rs 3 per share announced

Commenting on Q3 performance, CEO and MD of TCS, S. Ramadorai said: “We’ve had another quarter of exceptional performance. TCS has become the first Indian IT company to clock $1 billion in revenues in a single quarter and has crossed the $3 billion mark in the first three quarters alone.” He added: “This shows that TCS’ full-services model is delivering sustained profitable growth quarter on quarter in the midst of a dynamic operating environment.”

S. Mahalingam, Chief Financial Officer, said: “We managed high growth rates with margin improvement and we have put the platforms in place to leverage current cost levels for higher revenues on an ongoing basis. This performance is even more noteworthy as it has taken place against the background of a rising Indian rupee.”

“TCS has delivered on the order pipeline and closed five deals of over $50 million in Q3. Our full-services model is in high gear and our large accounts are engaging us for new services in significant deals,” said N. Chandrasekaran, global head of sales and operations. “Our Global Network Delivery ModelTM operations ramped up 30% in Non-India GDCs during Q3 and are providing global customers with delivery certainty.

Human Resources Update:

In the context of a global workforce, we are winning the talent game as the company with the best retention rate in the industry,” said S. Padmanabhan, global head of human resources. “Our pool of experienced professionals continues to grow and provide customers with high level of delivery excellence.”

There was a gross addition of 7,835 (net 5,562) employees during the 3rd quarter. In India, there were 2,478 campus hires and 4,015 lateral hires. TCS continued to maintain the lowest attrition rate in the industry at 10.8%. At the end of Q3, the total employee strength of the company was 83,500, with employees coming from 60 different nationalities. Non-Indian nationals formed 8.8% (8.3% in Q2) of the total employee base and 25% were women. 12,372 campus offers have been made to suitable candidates for FY08.
Big Wins

• TCS signed a comprehensive transformation and outsourcing deal for $140 million with a leading Latin American private bank for 5 years. TCS will also implement FNS BANCS core banking solution to support operations
• TCS and FNS won approximately $100 million core banking deal with a Chinese bank
• Multi-year application development and support contract for $90 million with Australia’s leading airline
• A leading UK-based food and grocery retailer engaged TCS for an end-to-end outsourcing deal comprising of application and infrastructure services with committed revenues of $ 70 million
• Multi-year, multi-million dollar outsourcing deal for development and support of a North American telecom service provider’s business systems
• TCS was chosen by one of the largest Engineering companies globally for an end-to-end SAP implementation services in North America and UK
• A Government Department in a Middle Eastern country selected TCS as its systems integrator for deploying a core ERP system to help achieve better control over internal processes and enhance productivity
• The world’s leading provider of Health and Hygiene products from North America selected TCS for providing global end-to-end infrastructure services, using the Global Network Delivery ModelTM