TCS clocks Rs 22,863 cr ($5.7 billion) in revenues in FY08; up 22%, PAT at Rs 5,026 cr ($1.25 billion); up 19%

Highlights of 2007-08

• Total Revenues at Rs 22,863 crore (US $5.7 billion); up 22.36 % Y-on-Y
• Profit after tax at Rs 5,026 crore (US $ 1.25 billion); up 19.31% Y-on-Y
• EPS for 2007-08 at Rs 51.36 from Rs 43.05 in 2006-07
• Total Dividend for FY08 at Rs 14 per share; Payout Ratio at 27%

Full Services model and Global Network Delivery Model pays dividends

• 20 deals of $50m-plus closed during 2007-08
• New-growth services (BPO, Assurance, Infrastructure Services and Consulting) revenues up 52% to $ 1.1 billion
• 212 new customer additions during the year
• $100 million customers increase to 7 (from 3 in FY07)
• Landmark $1.2 billion 10-year deal with The Nielsen Company

Growing Global Footprint

• UK revenues cross $ 1 billion
• Continental Europe crosses $500 million
• New Development Centers opened in Cincinnati (USA), Mexico, Morocco
• 5 in 5: Latin America crosses 5,000 people in five years
• APAC & IberoAmerica post revenues of $250m each
• New Growth Market (APAC, Iberoamerica, India, Middle East & Africa) strategy paying dividends; revenues grow at $ 1.1 billion, up 41%

Human Resource Management

• Total employee strength at 111, 407
• Lowest Attrition rate in the industry at 12.6% LTM (including BPO)
• 35,672 people hired; net additions at 22,116 people
• 22,451 campus offers made for 2008-09 (4,089 to science graduates for Ignite)

Mumbai, India, April 21, 2008: 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 Indian GAAP for the quarter and financial year ended March 31, 2008.

 Highlights for Quarter Ended March 31, 2008

• Total Revenues at Rs 6,098 crore (US $ 1.5 billion) up 18.13% Y-on-Y and 2.95% Q-on-Q
• Net Profits at  Rs 1,245 crore (US $ 310 million) up 4.15% Y-on-Y and (-6.17) Q-on-Q
• EPS at Rs. 12.72 in Q4 from Rs. 13.56 in Q3
• 53 new clients added
• Gross employee addition at 6,921 and Net employee additions at 3,299
• Closed six $50million plus deals in Q4
• Rs 5 per share declared as final dividend in Q4

Commenting on the strong performance in 2007-08, S. Ramadorai, CEO and MD said: “We are extremely satisfied with our annual performance. Our full year results reflect a validation of our strategy and robust business model that has helped us deliver strong growth rates again on an ever increasing base and in a difficult and challenging environment.” He added: “We will deliver sustained, profitable growth in the next financial year, helped by a new, agile customer-centric organization structure that adds value to our clients and employees.”

S. Mahalingam, Chief Financial Officer and Executive Director, said: “This has been a year where we have made significant investments to diversify our revenues and grow in new markets as well as develop new solutions and services. We have also invested to build new delivery centers in India, US, Mexico and Morocco. He added: We have been able to retain net margins at 22 per cent, despite challenging external circumstances through prudent financial and treasury management and in a scenario where the rupee has appreciated 11 per cent, our cost of revenues remains at the same level as last year.”

N. Chandrasekaran, Chief Operating Officer and Executive Director said: “TCS continues to gain traction for its superior full services capabilities backed by our global network delivery model. Our significant deal wins in the last few quarters across sectors and markets and a healthy deal pipeline will drive our ramp ups to deliver growth next year. In addition to the major markets, we are also well positioned to deliver growth in new growth markets like Asia-Pacific, India, Middle-East and Latin America. 

TCS continues to invest in building its global brand around its brand promise of “Experience Certainty”.  “Our brand has got greater visibility across markets since the launch of our brand campaign last year. We continue to invest in building our brand across markets globally and espouse our proposition of certainty which is being fully endorsed by our customers,” said Phiroz Vandrevala, Executive Director and Head, Global Corporate Affairs.

Human Resources Update:

At the end of the financial year of 2007-08, TCS’ total employee strength stood at 111, 407 with a gross addition of 35,672 employees and a net addition of 22, 116 employees. In Q4, there was gross addition of 6,921 and a net addition of 3,299 employees.

TCS continued to maintain the lowest attrition rate in the industry at 12.6%. Overseas nationals formed 9.1% of the total employee base with employees coming from 62 different nationalities. 28% of all employees are women.

The company has made 22,451 campus offers for 2008-09 including over 4,000 science graduates for its pioneering science-to-software transformation program, Ignite.

“During this fiscal year, we have inducted, trained, integrated and absorbed over 35,000 people, which highlights our global recruitment and training expertise in handling talent and provides an important competitive differentiator for us,” said Ajoy Mukherjee, Vice President, Head, Global Human Resources.

Key Wins

• Large, multi-year contract with one of the largest automotive OEMs to deliver ADM services as part of the customer's strategic sourcing initiative by leveraging TCS’ Global Network Delivery Model™.
• Deal worth £150 million (over $300 million) to provide full range of IT services and transform the legacy systems for a UK-based Insurance services provider.
• One of the world’s leading telecom equipment companies has selected TCS to provide Product Engineering and R&D services for its Operations and Business Software business unit in Europe in a deal worth $70 million.
• Deal worth $100 million for application development outsourcing with a leading UK retailer.
• Deal worth $100 million for providing ADM services to one of the largest water utility companies in the UK
• Partnered with a large Investment Advisory company in the UK, to provide consulting, IT, infrastructure and Business Processing Outsourcing (BPO) services in a contract valued at $60 million.
• A Ministry of Finance arm responsible for Infrastructure Management Services chose TCS for creation and running of their Data Centre.
• Won a multi-million dollar contract for a large BFS company in the US to maintain and enhance their core mainframe systems.

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 111,000 of the world's best trained IT consultants in 50 countries. The company generated consolidated revenues of US $5.7 billion for fiscal year ended 31 March 2008 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.