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- FY10 revenues at Rs30,029 crore, up 8 per cent year-on-year
- FY10 net profit at Rs7,001 crore, up 33 per cent year-on-year
- Q4 net profit at Rs2,001 crore, up 50.1 per cent year-on-year and 9.7 per cent quarter-on-quarter
Mumbai: Tata Consultancy Services (TCS) (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, 2010.
| Highlights for FY2009-10 |
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Highlights for fourth quarter of FY2009-10 |
Shareholder highlights
- FY10 EPS at Rs35.67
- Total FY10 dividend at Rs20 per share including Rs4 as final dividend and Rs10 per share as special dividend (proposed)
- Total dividend payout ratio at 65.6 per cent
Business highlights:
- Volume growth at 17 per cent
- FY10 operating profits at Rs8,018 crore, up 21.91 per cent; operating margins up 304 basis points, to 26.7 per cent
- Net profits at Rs7,001 crore, up 33 per cent; net margin up 441 basis points, to 23.3 per cent
- Gross addition of 38,063 professionals; net addition of 16,668 professionals
- Total employee strength: 160,429
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- Q4 revenues at Rs7,738 crore, up 7.9 per cent year-on-year and 1.17 per cent quarter-on-quarter
- Volume growth at 4.0 per cent
- Operating profits at Rs2,165 crore, up 29.1 per cent year-on-year; 3.0 per cent quarter-on-quarter; OPM up 51 basis points sequentially at 28.0 per cent
- Net profits at Rs2,001 crore, up 50.1 per cent year-on-year and 9.7 per cent quarter-on-quarter; net margin up 201 basis points sequentially at 25.9 per cent
- Largest ever organic gross addition of 16,851 professionals in Q4
- Net addition of 10,775 employees
- Attrition rate at 11.8 per cent LTM
- Utilisation rate (excluding trainees): 81.8 per cent
- Utlisation rate (including trainees): 74.3 per cent
- EPS at Rs10.15 in Q4 from Rs9.3 in Q3
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N Chandrasekaran, chief executive officer and managing director, TCS, 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, Mr 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 utilisation 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,” Mr 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 FY11,” 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 per cent on a LTM basis. Overseas nationals formed over 6.7 per cent (10,700 employees) of the total employee base with employees from 80 different nationalities. The average age of a TCS employee is 28 years; 57 per cent of the workforce has more than 3 years experience; and 30 per cent of our workforce are women.
Key wins:
- A European government agency awarded TCS a $500-million-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 $100 million, a leading global electronics conglomerate has chosen TCS as the strategic partner for end-to-end infrastructure services including business transformation.
- The 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 worldwide customer installed base.
- TCS was awarded a multi-year IT infrastructure management contract from a leading renewable energy company in Asia Pacific.
- A 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.
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