TCS crosses $10 b on strong growth momentum in 2011-12; Annual Revenues up 24% at $10.17 b

MUMBAI, India, April 23, 2012 /PRNewswire/ -- 

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 ten billion dollar milestone posting annual revenues of $ 10.17 billion.

Commenting on the 2011-12 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 FY13, Mr. N 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 2011-12 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.  All industry verticals grew in double digits during FY12. 

TCS' full services capabilities continue to be leveraged by customers with new service lines growing at a fast pace - Infrastructure Services, Enterprise Solutions and Business Process Outsourcing service lines each clocked more than $ 1 billion in revenues in 2011-12. 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 program 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 & retail management program
• 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 USA 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 31 March 2012, the company has applied for 448 patents and has been granted 68 patents.

Human Resources:
"We have successfully undertaken the largest ever hiring effort in our history by adding and integrating 70,400 professionals during 2011-12. 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 per cent." 

High utilization rates have been maintained in the fourth quarter with utilization excluding trainees at 80.6 per cent, while utilization including trainees was at 71.3 per cent. The overall attrition rate was lower at 12.2% with IT attrition at a low of 11.05 per cent and BPO attrition at 21.6% on a LTM basis. The campus hiring process in India has been completed for FY12.

The average age of a TCS employee is 28 yrs and 62.4% of the workforce has more than 3 yrs experience while 31.6% of the workforce comprised of 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 is named 'Best Company to work for' by Business Today magazine. TCS' Investor Relations Officer has been ranked Best in India by Asiamoney.  TCS also topped in FinanceAsia's Best Managed Companies poll. TCS BPO bagged top honors 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 Special Jury Award – Green IT Company of the Year 2012.  CFO S Mahalingam was awarded the 'CFO of the Year' by CNBC-TV18 and he also won the Best CFO for the IT & ITeS sector.

About Tata Consultancy Services Ltd (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services. This is 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 238,583 of the world's best trained consultants in 42 countries. The Company generated consolidated revenues of US $ 10.17 billion for year ended 31 March, 2012 and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com

SOURCE Tata Consultancy Services