Net Income at $517 m; up 14% Q-o-Q, 35% Y-o-Y
MUMBAI, January 17, 2011: Tata Consultancy Services (BSE: 532540, NSE: TCS) reported its consolidated financial results according to US GAAP for the quarter ended December 31, 2010.
Highlights for Quarter Ended December 31, 2010
N Chandrasekaran, TCS CEO and Managing Director, said, “Sharp focus on our strategy with rigorous execution discipline has helped us capture volumes, defend our margins and deliver another stellar quarter. Demand environment continues to be strong and we are focused on helping our customers become more efficient and plan for growth.” He added, “With clients’ focused on transforming their businesses and become globally competitive in this dynamic macro environment, we are optimistic that demand for our solutions will continue to be strong going forward.”
S Mahalingam, Chief Financial Officer, said, “Our ongoing outperformance has been the result of a sustained effort from all operating teams to focus on growth with profitability. As we grow in size, we will have more levers at hand to combat headwinds and maintain our profitability while continuing to grow.” He added, “We continue to live with currency volatility and have leveraged our cost management ability to deliver on margins.”
Growth was led by the developed markets like the United States and Europe with strong contributions from Asia Pacific, the Middle East and Africa. The portfolio of industries has shown strong growth. In terms of services, our full-services capabilities continue to be leveraged by customers with our new service lines like Assurance and Infrastructure Services growing at a fast clip.
Innovation and Intellectual Property:
During this quarter, TCS has been granted three patents. As of December 31, 2010, it has applied for 413 patents and has been granted 67 patents.
Global Network Delivery Model™ (GNDM™):
Offshore revenues were up by 30 basis points at 51.4%, while revenues from non-Indian GNDM centers were at 4.9%.
TCS’ portfolio of financial products under the umbrella brand of TCS BaNCS continued to exhibit strong double digit growth. It has won six engagements in core banking, capital markets and insurance segments across markets. In addition, four product installations went live during the quarter, including the multi-country core banking roll-out for a large European-HQ global bank.
Utilization in Q3 FY11 remained at 83.8% (excluding trainees) and 77.1% (including trainees). The attrition rate in Q3 for IT Services was 13.2% (LTM) and BPO, 24.7% (LTM) while the overall attrition was at 14.4%. At the end of Q3, TCS’ total employee strength was 186,914. Non-Indian nationals formed 6.8% of the total employee base and 31% comprised women.
“We have welcomed the highest ever number of new TCSers in a single quarter with a gross addition of 20,219 employees as we continue to support the company’s strong growth and business pipeline,” said Ajoy Mukherjee, Vice President, Head, Global Human Resources. “Given the strength of business demand, we have exceeded the hiring target we had set for this fiscal year.”
Awards and Recognition:
About Tata Consultancy Services Ltd. (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™ (GNDM™), recognized as the benchmark of excellence in software development.
A part of the Tata group, India’s largest industrial conglomerate, TCS has over 186,500 of the world’s best-trained IT consultants in 42 countries. The company generated consolidated revenues of US $6.3 billion for fiscal year ended March 31, 2010 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com.