Solid Fourth Quarter Crowns Strong Annual Performance
- FY10 Revenues at $ 6.34 Billion; up 5.38% Y-o-Y
- FY10 Net Profit at $1.45 Billion; up 29.01 Y-o-Y
- Q4 Net Profit at $ 420 Million up 59.69% Y-on-Y and 9.69% Q-on-Q
MUMBAI, April 19, 2010: Tata Consultancy Services (BSE: TCS.BO, NSE: TCS.NS), the leading IT services, business solutions and outsourcing firm reported its consolidated financial results according to US GAAP for the quarter and financial year ended March 31, 2010.
Highlights for Financial Year 2009-10
- FY10 EPS at $ 0.74
- Volume growth at 17%
- FY10 Operating Profits at $1.68 b up 18.02%; Operating Margins up 277 basis points at 26.5%
- Net Profits at $1.45 b up 29.01%; Net Margin up 429 basis points to 22.9%
- Gross addition of 38,063 professionals; net addition of 16,668 professionals
- Total employee strength: 160,429
Highlights for Fourth Quarter 2009-10
- Q4 Revenues at $1,686 m, up 17.61% Y-on-Y and 3.07% Q-on-Q
- Volume Growth at 4.02%
- Operating Profits at $464 m, up 36.48 % Y-on-Y and 3.8% Q-on-Q
- Net Profits at $420 m, up 59.69% Y-on-Y and 9.69% Q-on-Q
- Largest ever organic gross addition of 16,851 professionals in Q4
- Net addition of 10,775 employees
- Attrition rate at 11.8 % LTM
- Utlization Rate (excl trainees): 81.8 %
- Utlization Rate (incl trainees): 74.3 %
N. Chandrasekaran, CEO and MD said: “Our ability to react to growth opportunities and execute efficiently has helped TCS deliver a superior performance for the fourth successive quarter. Our volumes have grown and our margins are at near historic highs.”
Commenting on the stellar performance in 2009-10, Chandrasekaran said: “Strong volume growth of 17 per cent during the year has rounded off an exceptional year for TCS. Our sales and execution machine is primed and we have laid a solid platform for growth. There is significant traction for our strategy of full services which together with our global engagement model positions us well for accelerated growth.”
S. Mahalingam, Chief Financial Officer and Executive Director, said: “In the fourth quarter, our focus on superior project execution and efficient utilization of experienced professionals have helped deliver a superior gross margin performance despite strong currency headwinds. Sustained cost efficiencies and treasury management have also helped improve operating margins and net margins sequentially.”
“While FY10 has been a challenging year, we have used this time to improve efficiencies and generate better returns by boosting margins. Our cost base has remained constant and we have leveraged this to support higher business growth. Looking ahead, we will continue our focus on managing costs and efficiencies while ensuring that investments are aligned to capture growth opportunities that emerge across the spectrum,” Mahalingam added.
Talent Management Update:
“In FY10, we have been through an entire business cycle where controlled hiring in the first two quarters gave way to rapid recruitment in the last two quarters. We have made 20,000 campus offers for FY 11,” said Ajoy Mukherjee, Vice President, Head, Global Human Resources. “Our initiatives to provide a holistic professional career for our employees has helped keep attrition rates stable,” he added.
Attrition rates continued to be stable at 11.8% on a LTM basis. Overseas nationals formed over 10,700 or 6.7% of the total employee base with employees from 80 different nationalities. The average age of a TCS employee is 28 yrs; 57% of the workforce has more than 3 yrs experience; and 30% of our workforce are women.
- A European government agency awarded TCS a $500M plus contract to be the administrator for their pension scheme. This full services deal leverages offerings across TCS Financial Solutions, BPO, Remote infrastructure management and IT services.
- In a multi-year deal worth over USD 100M, a leading global electronics conglomerate has chosen TCS as the strategic partner for end-to-end infrastructure services including business transformation.
- World's leading cruise operator has selected TCS as the IT partner of choice across the group.
- A US based commercial insurance company selected TCS as its IT transformation partner to shift to a Managed Services operating model across all its IT operations.
- A European headquartered, financial services company selected TCS as a Tier - 1 partner to support its strategic objectives on ITO, Infrastructure, BPO and KPO across their global locations.
- TCS has signed a multi-million, multi-year deal with a global telecommunications provider for its European operations for managing their enterprise products in voice and data for their world-wide customer installed base.
- TCS was awarded a multi-year IT Infrastructure management contract from a leading renewable energy company in Asia Pacific.
- An leading global manufacturer of power systems has selected TCS to be their Engineering Services partner for product development and research services.
- A leading retailer in North America has awarded TCS a multi-million dollar contract to streamline operations and drive efficiencies across its portfolio of applications.
About Tata Consultancy Services (TCS)
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 160,000 of the world's best trained IT consultants in 42 countries. The company generated consolidated revenues of US $6 billion for fiscal year ended 31 March 2010 and is listed on the National Stock Exchange and Bombay Stock Exchange in India.
For more information, visit us at www.tcs.com.