April 23, 2012

TCS crosses $10 billion in annual revenues on strong growth momentum in FY2011-12

  • Annual revenues up 31 percent at Rs48,894 crore ($10.17 billion)
  • FY2011-12 net profit at Rs10,638 crore ($2.2 billion); up 22 percent Y-o-Y
  • Q4 revenues at Rs13,259 crore; up 30.5 percent Y-o-Y and 0.4 percent Q-o-Q
  • Q4 net profit at Rs2,932 crore; up 22.6 percent Y-o-Y and 1.6 percent Q-o-Q
Annual highlights for FY2011-12 Highlights for 4th Quarter 2011-12
  • Operating profits at Rs13,514 crore; up 29.0 percent;
  • Volume growth at 23.05 percent 
  • Infrastructure services, enterprise solutions, BPO units cross $1 billion in revenues
  • $100 million-plus clients rise to 14 (8 in FY2010-11)
  • All-time high gross addition: 70,400 employees
  • All-time high net addition: 39,969 employees
  • Total employee strength: 238,583
  • FY2011-12 EPS at Rs54.4
  • Total dividend at Rs25 per share including proposed Rs8 as final dividend and Rs8 as special dividend
  • Operating profits at Rs3,672 crore; up 27.7 percent Y-o-Y; (4.9) percent Q-o-Q;
  • Gross addition: 19,156 professionals Net addition: 11,832 employees
  • Attrition rate: 12.2 percent LTM
  • Utilisation rate (excluding trainees): 80.6 percent
  • Utilisation rate (including trainees): 71.3
  • EPS at Rs14.98 in Q4 from Rs14.75 in Q3

Mumbai: Tata Consultancy Services (TCS), (BSE: 532540, NSE: TCS), a leading IT services, consulting and business solutions firm, reported its consolidated financial results according to IFRS for the quarter and financial year ended March 31, 2012.

The company became the first Indian IT company to cross the $10-billion milestone posting annual revenues of $10.17 billion.

Commenting on the FY2011-12 performance, N Chandrasekaran, CEO and MD, said: “We have carried our strong momentum through the fourth quarter to close out a year of strong growth. We have kept our focus on profitability and consolidated our market leadership.” He added: “With our customer-centric approach, strong solution set and investments in game-changing technologies like mobility, big data and cloud, we remain well positioned to help our customers transform and drive growth in their businesses.”

Looking ahead to FY2012-13, Mr Chandrasekaran said: “TCS is well prepared to achieve balanced growth across the industries and markets it operates in, given its holistic portfolio of services which are now achieving significant scale across markets.”

S Mahalingam, chief financial officer and executive director, said: “We have grown very well during FY2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months.” He added: “Our focus is firmly fixed on the opportunities out there. So while maintaining our cost discipline at an operational level, we continue to invest in capacity and capability as we prepare for growth ahead.”

There was secular growth across markets and industries during the financial year. North America grew by 29.6 percent to cross $5 billion, while Europe including the UK grew by 33.8 percent. All industry verticals grew in double digits during FY2011-12.

TCS’s full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace — infrastructure services, enterprise solutions and BPO service lines each clocked more than $1 billion in revenues in FY2011-12. All other service lines also grew by double digits.

Key wins in Q4

  • Selected by a leading US insurer as a strategic partner in a multi-year programme that aims to help it re-architect its policy and customer management application portfolio and drive greater agility in product development, integrated marketing, and customer experience management.
  • Partnered with one of the largest European telecom companies to restructure their application and infrastructure management services and help transition from legacy service vendors, re-architect the solution delivery processes and transform to an end-to-end managed services model.
  • Selected by a leading international automotive retailer to support, develop and globally rollout their dealer and retail management programme.
  • Awarded a multi-million dollar managed services contract by a leading, global smart devices manufacturing company to provide application maintenance and support services for their core business processes in supply chain, order management, sales and finance functions.
  • Selected by a leading US grocery retailer to deliver end-to-end infrastructure services on a managed services model. TCS is currently their strategic global vendor for IT services
  • Selected by a leading bank in Latin America to be their IT and business solution partner

Innovation and intellectual property
As of March 31, 2012, the company has applied for 855 patents and has been granted 72 patents.

Human resources
“We have successfully undertaken the largest-ever hiring effort in our history by adding and integrating 70,400 professionals during FY2011-12. With business demand continuing to be robust, we have made 43,600 offers on campuses for trainees to join us from the second quarter of this fiscal year,” said Ajoy Mukherjee, executive vice president, head, global human resources. “Our efforts to increase retention by engaging with our employees and offering them a progressive career path are paying dividends with attrition rates falling further to 12.2 percent.”

High utilisation rates have been maintained in the fourth quarter, with utilisation excluding trainees at 80.6 percent, while utilisation including trainees was at 71.3 percent. The overall attrition rate was lower at 12.2 percent, with IT attrition at a low of 11.05 percent and BPO attrition at 21.6 percent on an LTM basis. The campus hiring process in India has been completed for FY2011-12.

The average age of a TCS employee is 28 years and 62.4 percent of the workforce has more than 3 years experience while 31.6 percent of the workforce comprised women.

Awards and recognition
TCS received The Institute of Chartered Accountants of India (ICAI) Award for Excellence in Financial Reporting. The company was awarded 'Outstanding Company of the Year 2012' by CNBC TV18. TCS has been named 'Best Company to work for' by Business Today magazine. TCS's investor relations officer has been ranked the best in India by Asiamoney. TCS also topped in FinanceAsia's Best Managed Companies poll. TCS BPO bagged top honours at the Process Excellence Awards in Orlando. It also won the ‘Best New BPO Locator of the Year’ at the International ICT Awards.

The company won special innovation award in France. It won the Management Consulting Award from the Association of Management Consulting Firms for Operational Performance. The firm also secured the 2012 ‘Best Offsite Facility’ award from Microsoft. TCS Hyderabad has received the Special Jury Award – Green IT Company of the Year 2012. Mr Mahalingam was awarded the ‘CFO of the Year’ by CNBC-TV18 and he also won the Best CFO for the IT & ITeS sector.