The Hindu : Business : TCS Q3 revenue crosses $1 b

Online edition of India's National Newspaper
Wednesday, Jan 17, 2007
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TCS Q3 revenue crosses $1 b

Net moves up 10 p.c.; better pricing and cost efficiency push up margins

S. Ramadorai

MUMBAI: Tata Consultancy Services (TCS) has crossed the $1 billion milestone in revenue in third quarter of this fiscal, while revenues for the first nine months crossed the $3 billion mark.

"TCS, thus, becomes the first Indian IT company to clock $1 billion in revenues in a single quarter,'' TCS CEO and Managing Director S. Ramadorai told reporters here on Monday.

The company reported an 8.42 per cent growth in revenues at Rs. 4,873 crore ($1.1 billion) and 9.56 per cent growth in the net profit at Rs. 1,116 crore ($252 million) as compared to the same quarter last fiscal. "We added 55 new clients and 7,835 employees, besides bagging a $140-million deal from a Ecuadorean bank,'' he said. The company also concluded two $100-million and three $50-million deals during the quarter.

The company's performance had been creditable, especially when viewed against the backdrop of an appreciating rupee, TCS Chief Financial Officer S. Mahalingam said. "Our operating margins improved by 79 basis points on a quarter-on-quarter basis,'' he said.

The margin expansion was mainly on account of better pricing and cost efficiencies, he said. The company had hedged $583 million at around Rs. 45-45.50 for the fourth quarter, he added.

N. Chandrasekaran, Global Head (Sales and Operations), said the company was achieving a 3-5 per cent growth in contract renewals and a 5-10 per cent enhancement on new contracts.

The deal pipeline was "fantastic,'' Mr. Chandrasekaran said, adding that the company was in the process of closing ten more deals. There was 30 per cent growth in revenues from its global network delivery models, he said. — PTI

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