Revenues cross $10 billion mark in 2011-12

Tata Consultancy Services (TCS) reported a net profit of Rs.2,932 crore for the fourth quarter ended March 31, 2012, a growth of 22.6 per cent over the same quarter of the previous year.

Revenues were up 30.5 per cent at Rs.13,259 crore.

Final dividend

For the year 2011-12, the company has announced a total dividend at Rs.25 per share of Re.1 each, including proposed Rs.8 final and Rs.8 as special dividend. The total dividend includes an interim of Rs.9 per share declared earlier.

“We have grown 31 per cent for the full year (2011-12) and our profits crossed the Rs.10,000-crore-mark,” said N. Chandrasekaran, CEO and MD, while addressing a press conference here on Monday.

TCS became the first Indian IT company to cross the $10 billion milestone posting annual revenues of $10.17 billion. The revenues of the company were up 31 per cent at Rs.48,894 crore for the year and profits 22 per cent at Rs.10,638 crore. The volume of business also increased 23.05 per cent during the year. Mr. Chandrasekaran said that infrastructure, enterprise solutions and BPO businesses crossed $1 billion each in annual revenues.

Good momentum

“We see a good momentum. We will come ahead of Nasscom targets,” said Mr. Chandrasekaran on the company's outlook for 2012-13, adding, “The order book is healthy and it is improving.”

“The good thing is that, in the fourth quarter (last fiscal), we have grown in all major verticals. It was a satisfying quarter,” said Mr. Chandrasekaran, adding, “TCS is well prepared to achieve balanced growth across the industries and markets it operates in, given its holistic portfolio of services which are now achieving significant scale across markets.”

S. Mahalingam, CFO and Executive Director, said, “We have grown well during 2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months.” There was secular growth across markets and industries during the last financial year.

North America grew by 29.6 per cent to cross $5 billion while Europe, including the U.K. grew 33.8 per cent. All industry verticals grew in double digits during 2011-12.

Fall in attrition rate

Ajoy Mukherjee, Executive Vice-President, Head, Global Human Resources, said “The company's efforts to increase retention by engaging with our employees and offering them a progressive career path are paying dividends with attrition rates falling further to 12.2 per cent. We have successfully undertaken the largest ever hiring efforts in our history by adding and integrating 70,400 professionals in 2011-12. With business demand continuing to be robust, we have made 43,600 offers on campuses for trainees to join us from the second quarter of this fiscal.”

During the January-March quarter, the company added 11,832 employees (net), taking its total headcount to over 2.38 lakh, the company said in a statement.

Keywords: TCS Q4 results

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