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TCS notches up net profit of Rs 2996.75 cr

By Staff
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Mumbai, Apr 17 (UNI) Boosted by a whopping 76.38 per cent increase in its net profit at Rs 832.12-crore in Q4 FY 06, Tata Consultancy Services (TCS) notched up a net profit of Rs 2996.75-crore on a total revenue of Rs 13252.15-crore for the last fiscal.

While the FY 06 revenue was up 35.94 per cent, TCS' net profit escalated by 50.07 per cent prompting the Company's CEO and Managing Director S Ramdorai to say, ''FY 06 was a defining year and going forward, we see great years ahead of us.'' TCS also announced a maiden bonus issue in the ratio of 1:1 and a final dividend of Rs 4.50 per share which works out to Rs 13.50 per share for the whole year.

The Company's geographical distribution of revenues were Rs 6840.36-crore, Rs 2613.69-crore, Rs 1141.74-crore and Rs 619.07-crore respectively from the Americas, Europe, India and other regions.

The Company, however, suffered a net decline in margins of two per cent due to Tata Infotech's merger with itself which took place in February 2006 and the impact of exchange rates. ''Had the interest rates been a little more favourable, we would have touched the USD 3 billion mark,'' Mr Ramadorai said.

Addressing journalists here today, Mr Ramadorai said that TCS' strategy of signing multi-year deals, cross-selling its products and services as well as its emergence as an integrated services provider with a global footprint, have enabled it to ''maintain its strong growth rates in the marketplace.'' He revealed that TCS had just signed a USD 500 million deal with a leading company spread over the next four-to-five years.

TCS presently has nine customers with whom it has signed deals with a value of over USD 50 million, 35 over USD 20 million, 54 over USD 10 million, 96 over USD 5 million and 256 over USD 1 million.

Stating that the strategic acquisitions TCS had indulged in, would start unlocking synergies and value going forward, Mr Ramadorai revealed that the Company's active customers stood at 748 as at end-Q4 FY 06 with 89 new customers.

Informing that FNS, the Company's wholly-owned Australian subsidiary, was generating revenues as per projections, Mr Ramadorai said that its product BANCS has been selected by three leading banks as their core banking solution.

The Company had also recently inked a JV pact with the UK-based Pearl group by acquiring its IT processing set-up called Diligenta in the sphere of life and pension processing ''and this too is performing up to our expectations,'' Mr Ramadorai said.

On the JV entered into with the Chinese Government, Mr Ramadorai said that the final contract was ready and would be signed within the next couple of months.

Mr Ramadorai also highlighted the fact that during FY 06, TCS became the first IT company in India to employ more than 60,000 professionals, with a total strength of 62,832 comprising of 53 different nationalities.

''We plan a gross addition of 30,500 people in FY 07 and have already made 9,200 campus offers so far,'' he said. This is on top of the net addition of 21,140 personnel in FY 06. ''TCS continues to maintain its annualised attrition under ten per cent (at 9.9 per cent),'' he remarked.

Demand for IT professionals will remain high, Mr Ramadorai averred, adding that ''TCS' commitment to training and nurturing talent is very high and I am confident that our retention strategy will work very well.'' This entails not just offering its employees a high remuneration but also providing them with growth opportunities and adding value to their careers and job-profiles, he said.

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