Revenues drive TCS Growth

Transcription

1 Highlights for Q : Strong International INDIAN GAAP Revenues drive TCS Growth Rs. Crores Q-on-Q Total Income 2, % PBIDT PAT % 33.66% EPS Rs in Q1, up from Rs in Q4 Added 68 clients this quarter Net Addition of 2,690 employees this quarter Sustained strong retention performance attrition at 8.2% 1

2 Highlights for Q : Strong International US GAAP Revenues drive TCS Growth Revenues International Revenues Rs. Millions 23,933 Q-on-Q 5.47% Indian Revenues Total Revenues Operating Income Net Income before one-off items 3, % 27, % 7, % 6, % EPS Rs in Q1, up from Rs in Q4 Added 68 clients this quarter Net Addition of 2,690 employees this quarter Sustained strong retention performance attrition at 8.2% 2

3 11.7% 5.8% Growth by Market Americas TCS acquired new customers in all geographies during the quarter. 23.5% 59.0% Europe India Others US and Continental Europe have registered strong growth during the quarter Geography % Q1 FY 2006 Q4 FY 2005 Americas Europe India Others Total In addition to growth in our traditional markets of North America and UK, we are seeing increased momentum in continental Europe, Middle East and Japan. The deal sizes in the UK are getting larger and as a result the sales cycles are proving to be longer. 3

4 Growth by Service Line 22% 3% 3% Application Development & Maint. Asset Leveraged Solutions 72% Enterprise Solutions Others SP Revenue % Q1 FY 2006 Q4 FY 2005 Application Development & Maint Enterprise Solutions Asset Leveraged Solutions Others Total The IT Services business derived growth from both the existing clients as well as new clients. The company s strategy to create new growth engines by focusing on six major service areas is gaining good momentum Five deals in BPO, Eight each in EIS and Infrastructure Management were won during the quarter. A major bank in South Africa selected TCS universal banking solution Quartz. A major airline selected TCS to implement an RFID based solution for its store operations efficiency by improving the spare parts data collection accuracy and quality. 4

5 Client Acquisition and Expansion Particulars Q1 FY 2006 Q4 FY 2005 Active Clients New Clients Revenue % from Repeat Business Revenue % from New Business

6 Representative Wins A leading global financial services firm selected TCS as its strategic IT provider on a multi-year contract worth US$100 million. A leading European Life Insurer has engaged TCS for developing its Policy administration systems. A leading enterprise solution vendor selected TCS for providing application management and infrastructure services from offshore. One of the largest apparel retailers selected TCS as the strategic outsourcing partner to provide a range of IT services. One of Europe's largest telecommunications groups signed up with TCS for developing corporate solutions within the HR domain to standardize and consolidate their ERP environments. A leading European based bio-tech major selected TCS for providing structure-based optimization solutions in drug discovery. 6

7 Total Employees TCS, Indian & Overseas Subsidiaries At the end of Q1 06, Total associates in TCS and its Indian subsidiaries was 48,711. Of this TCS was 43,682 and CMC,AFS,ASDC,PGS and WTI was 5, % of TCS associates have greater than 3 years experience. Women associates comprised 21% of TCS. The total associates in our Global Development Centers (GDC) in Q1-06 was 1,332 as compared to 1,223 in Q4-05. Our utilisation was 77.73% (excluding trainees) and 74.78% (including trainees). Total Associates ( Nos.) 48,711 Q ,029 43,682 45,714 Q ,722 40,992 36,639 Q ,917 32,722 Associates in subsidiaries Associates in TCS Ltd 7

8 Employee Additions and Attrition During Q1 06, We added 3,913 associates in TCS, comprising 3,523 associates in India and 390 overseas. In India, we added 1,745 Trainees & 1,778 Experienced Professionals. We added 109 associates in our GDCs. There has been a net addition of 2,690 associates in TCS. In FY-06, we will add a net of 13,500 associates in India and 2,000 associates in our overseas geographies. In Q2-06, we will add a net of 4,000 associates. In TCS, our attrition rate for the Last Twelve Months (LTM) i.e. end of Q1-06 was 8.2%. 1,223 associates have left us in Q1-06, of these 291 were low performers 8

9 Truly Global International Recruiting & Compensation Restructuring We had a total of 1,631 non Indian nationals as compared to 1,448 in Q4-05, constituting 3.7% of our associate base. The average increase in annual compensation was 11% in India and 4% in overseas geographies. We are moving towards a global compensation structure. This has been implemented in USA (w.e.f. July 2005), Australia, and China. 9