— PHOTO: PAUL NORONHA

CELEBRATION TIME: S. Ramadorai (centre), CEO and Managing Director, TCS, with (from left) P. Padmanabhan, Head, Global Human Resources, S. Mahalingam, CFO, N. Chandrasekaran, Head, Global Sales, and Phiroz Vandrevala, Head, Global Corporate Affairs, celebrating the company's record performance in Mumbai on Monday.

MUMBAI: Tata Consultancy Services (TCS) has crossed the $4 billion milestone for 2006-07 by notching up revenues of Rs. 18,685 crore ($4.3 billion), a 41 per cent growth over the previous year's Rs. 13,523.12 crore.

During 2006-07, TCS added 218 new customers and has been steadily increasing its overseas revenues. TCS North America revenues crossed $2 billion and TCS Europe $1 billion during the reference period. TCS Latin America revenues doubled to $159 million. The company has planned a new development centre at Morocco and is planning to ramp up its Mexico, Brazil and China global delivery centres.

Wide customer base

Addressing the media here on Monday, S. Ramadorai, CEO and Managing Director, TCS, said, "the robust business model using our full-services play and global network delivery model has given us the pole position to capitalise from the strong demand environment that exists globally. Our emerging high-growth services are giving the company a superior quality of revenue and a diversified customer base across markets and verticals. The significant number of large wins in 2006-07 that will ramp up during the next fiscal makes us confident of continuing sustained profitable growth.''

The high-growth service lines like infrastructure, consulting, business intelligence and assurance services grew by more than 100 per cent in 2006-07 and now contribute 18 per cent to TCS' revenues. This is helping the company maximise its revenues in an environment of strong international demand. Of the 12 deals of over $50 million closed in 2006-07, five involved the full-services play with customers using more than one service offering of the company.

There was a gross addition of 32,462 (net 22,750) employees during 2006-07. In the fourth quarter, gross addition was 8,613 (net 5,827) and TCS continued to maintain the lowest attrition rate in the industry at 11.3 per cent. At the end of the fourth quarter, the total employee strength of the company was 89,419 professionals. Overseas nationals formed 9.6 per cent (8.8 per cent in Q3) of the total employee base with employees coming from 67 nationalities. According to S. Padmanabhan, Head, Global Human Resources, TCS, "for the current year, we have a planned wage inflation of 3-5 per cent for our non-India payroll and 12-15 per cent for the India payroll.''

"To achieve over $4 billion in revenues in 2006-07 and over a billion dollar in operating income, we have exercised several levers in terms of pricing, off-shore leverage and cost controls to strengthen profit margins despite a fluctuating rupee,'' S. Mahalingam, CFO, TCS, said.

Pays Rs. 4 final dividend

Chennai Corporate reporter writes:

TCS has recommended a final dividend of Rs. 4 per equity share of Re 1. The company has posted a net profit after taxes of Rs. 1,078.76 crore for the quarter ended March 31, 2007, against Rs. 750.06 crore in the year-ago period. Total income has risen to Rs. 4,193.64 crore from Rs. 3,092.16 crore for the quarter ended March 31, 2006. The company has posted a net profit after taxes of Rs. 3,757.29 crore for the year ended March 31, 2007 against Rs. 2,716.87 crore in the previous year.

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