Tata Consultancy Services (TCS) declared the results for FY
2005-06. TCS posted a total income of $2.97 billion, up 36.27 percent
year-on-year (Y-o-Y). The profits have gone up by over 50 percent, pegged at
$665 million. Total income for Q4 has increased by 44 percent, and the net
profits are up by 76 percent Y-o-Y.
There was a net addition of 21,140 employees in FY06, and
TCS became the first IT company in India to employ more than 60,000 professionals.
The company plans to add another 30,000 people in the coming fiscal year. TCS
has one of the lowest attrition rates in the industry at 9.97 percent, whereas
the industry average stood at around 15-16 percent. S Ramadorai, CEO and MD, TCS,
said, “The war for talent will continue as there is a demand and supply gap
for resources.” The company is looking to hiring more people focused in the
enterprise resource planning (ERP) domain.
| Highlights
for financial year ended March 31, 2006 |
-
Total
income for FY06 at Rs 13,252.15 crore; up 35.94 % Y-on-Y
-
Net
profit for FY06 at Rs 2,966.75 crore; up 50.07 % Y-on-Y
-
Net
addition of 21,140 employees during the year
-
Total
number of clients added in FY06 are 330
-
EPS
for FY06 at Rs 60.63 from Rs 42.02 in FY05
-
Company
announces Maiden Bonus issue in 1:1 ratio
|
The TCS board also approved of a final dividend of Rs
4.50 per share and also announced a 1:1 ratio bonus issue for the first time.
The earnings per share (EPS) stood at Rs 60.63 for FY05, up from Rs 42.02 last
year.
“For a $2 billion company to grow by 36 percent is a
phenomenal performance by any standards,” added Ramadorai. He attributed three
reasons for the healthy growth: large outsourcing deals, even growth across
different operations, and continued customer and employee satisfaction.
Ramadorai also emphasized on the need to go local.
“Domestic is critical, and TCS has led the way in that sphere,” he said. The
domestic revenues (revenues from operation segment results) grew by a whopping
438.72 percent in FY06, up from Rs 67.70 crore to Rs 297.02 crore.
The company is also looking at big outsourcing deals,
namely a deal worth $500 million over the five years. The company is also
betting big on diversification, namely opening of the global delivery center (GDC)
in China. “This is not one at the cost of the another. We are looking at
China, because of the scale factor and access to the domestic market,” said
Ramadorai. TCS is also looking at tier-II cities for further expansion,
“Cities like Nagpur, Indore, Chandigarh, Coimbatore, Kochi, etc,” added
Ramadorai.
DQW News Bureau Mumbai, April 18