October 13, 2004
Quarter 2 results as per US GAAP• Half-year revenue crossed $1 billion
• Revenue up by 43.58 per cent Y on Y and 13.93 per cent Q on Q
• Net income up by 51.81 per cent Y on Y and 14.10 per cent Q on Q
• Added 52 clients in Q2
• Dataquest ranked TCS as No. 1 in Best Employer listing for 2004
• Another global first: The only company assessed at CMMI and P-CMM
• Level 5 at Enterprise Level simultaneously
• CS won JRD QV Excellence Award
Financial results for the quarter ended September 30, 2004
• Revenue was Rs2430.7 crore for the second quarter ended September 30, 2004, a growth of 43.58 per cent over the corresponding quarter during the previous year and 13.93 per cent over the quarter ended June 30, 2004.
• The net income after tax (before exceptional items) was Rs576.4 crore for the quarter ended September 30, 2004, a growth of 51.81 per cent over the corresponding quarter during the previous year and 14.1 per cent over the quarter ended June 30, 2004.
• Fully diluted earnings per share (face value of Re 1) for the quarter on an equity base of Rs48.01 crore at Rs11.56 (excluding exceptional items) and Rs7.34 (including exceptional items)
Commenting on the results Mr S Ramadorai, CEO and MD of TCS said "The overall quarterly performance reflects our leadership position and the excellent team work of all TCS Associates across all the global operations of the enterprise."
• Achieved a double-digit growth over the previous quarter in all geography segments namely Americas, Europe, India, Asia Pacific and others.
• 52 clients were added during the quarter. Amongst these, three new clients were added for remote infrastructure management during the quarter.
• The BPO offering is fully integrated and six new clients were added during this quarter.
• Clients have welcomed the process consulting under the Value Engines initiative. Three new clients were added and this service was offered to 17 clients during the quarter.
• The revenue from GE contributed to 15.9 per cent of the overall revenue during the quarter.
• New clients have been added and serviced by our GDCs in Uruguay, Brazil, Hungary and China. Today, these four GDCs serve 35 clients with each providing services to at least five clients.
- TCS delivered several end-to-end solutions to customers in different verticals across geographies.
- TCS system-integrated a customer relationship management solution and delivered it successfully for a large retailer in North America.
- An end-to-end solution comprising budgeting, planning, procurement and logistics was developed and delivered using the state-of-the-art component technology for a leading CPG company in Europe. The successful launch of the solution has resulted in a large follow-on assignment for TCS.
- A large customer and order management solution was delivered for a global telco to enable their 3G roll out in Australia.
- Quartz TCS flagship banking product went live for a bank in Latin America.
• Net addition of 3,974 employees during the quarter.
• The total number of employees was 40,948 including subsidiaries.
• Attrition was 7.9 per cent for the last twelve months.
• TCS took to Buffalo, Western New York its world-class training programme by opening a training centre to provide advanced IT training for new local recruits and existing TCS employees in the North American Region, thus creating a win- win relationship with the local community.
Awards and recognitions
TCS Limited became the world's first organisation to achieve an integrated Enterprise wide Maturity Level 5 on both Capability Maturity Model and People Capability Maturity Model. These are frameworks conceptualised by the Software Engineering Institute at Carnegie Mellon University, to benchmark and appraise the software process and people management process of an organisation.
TCS was rated the Best employer in Indian IT sector by Dataquest, IDC.
The government of Zhejiang Province conferred TCS China with ‘The West Lake Friendship Award’ that recognises enterprises that have made significant contribution to the economic development of the province.
TCS has been recognised as a 2004 Asian Most Admired Knowledge Enterprises (MAKE) Winner. The MAKE study is an established benchmark for identifying organisations founded and headquartered in Asia, which are effectively creating, sharing and using enterprise knowledge to become leaders in the 21st century global economy. TCS has been rated first on maximising enterprise intellectual capital and creating a learning organisation.
TCS received the JRD QV award for Business Excellence on Mr JRD Tata's birth centenary 29th July. The JRD Tata Quality Value Award is instituted in the memory of Mr JRD Tata and is modelled on the lines of the Malcolm Baldrige National Quality Award, integrating beneficial attributes from other national quality awards. The award recognises a company within the Tata Group, which excels in quality management and the achievement of the highest levels of quality. Only one other Tata company has received this award since its inception.
TCS Sholinganallur (Chennai) was awarded ISO 14001 certification for its commitment towards the environment management. It received commendations on optimising ground water utilisation, effective use of wastewater, significant saving in the power consumption and optimising the use of fuel consumption in the DG sets.
Tata Consultancy Services Limited is a world-leading information technology company, engaged in consulting, services, and business process outsourcing. It envisioned and pioneered the adoption of the flexible global business practices that today enable companies to operate more efficiently and produce more value. Established in 1968 as a division of Tata Sons, it took the decision to go public in 2004.
" Certain statements in this release concerning our future growth prospects are forward-looking statements, which involve a number of risks, and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, intense competition in IT services including those factors which may affect our cost advantage, wage increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed- price, fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our international operations, reduced demand for technology in our key focus areas, disruptions in telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability for damages on our service contracts, the success of the companies in which TCS has made strategic investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising capital or acquiring companies outside India, and unauthorised use of our intellectual property and general economic conditions affecting our industry. TCS may, from time to time, make additional written and oral forward-looking statements, including our reports to shareholders. The Company does not undertake to update any forward-looking statement that may be made from time to time by or on behalf of the company."