Mumbai, April 17: Tata Consultancy Services, the country’s largest software services company, today stunned its shareholders with a 1:1 maiden bonus and reported extremely robust results with revenues for the year ended March 31 falling tantalisingly short of the $3-billion-mark.
TCS spiced up the reward to its shareholders with a final dividend of Rs 4.50 per share (or 450 per cent on a Re 1 stock).
In rupee terms, the consolidated net profit for the TCS group surged 51.6 per cent to Rs 2,996.74 crore for the year ended March 31. Total income rose almost 36 per cent to Rs 13,386.23 crore.
The software giant had a fantastic fourth quarter with net profit surging 76.4 per cent to Rs 832.12 crore and overall revenues vaulting 44.9 per cent to Rs 3,738.10 crore.
The company also announced that it had added 330 new clients in the full year. It added 89 new clients in the fourth quarter.
The total revenue of the company in 2005-06 from the US stood at Rs 1,849.77 crore compared with Rs 1,290.35 crore the previous year.
Revenue from the European market stood at Rs 785.43 crore compared with Rs 560.01 crore for the same period a year ago.
The company set another record when it became the first infotech company in the country to have more than 60,000 employees. It plans to add another 30,000 people, including 3,000 employees overseas, in the next fiscal. The compensation levels are expected to go up by 15 per cent in the coming fiscal.
However, the company experienced a slight drop in its margins. “There was an approximately 2 per cent drop in margins due to the rupee-dollar exchange rate fluctuations,” the company said.
“Our company has the lowest attrition rates in the industry. The attrition rate for the year stood 9.9 per cent,” S. Ramadorai, CEO and managing director of TCS, said.
He, however, pointed out that there is a lack of trained professionals in the industry. People with knowledge in specific skill sets like ERP are very hard to get in the industry. As a result, he said, TCS believed in training people in specific skill sets and in retaining them long term.
Ramadorai said the billing rates for the new contracts would be higher than the rates for the contracts already signed.
The company is expected to soon announce a $500-million deal. “We have already signed the letter of intent but the final documents are yet to be readied,” he said.
Ramadorai said the company already had close to 400 people in China and expected to sign a joint venture agreement shortly with the Chinese government. With the $847-million deal from the UK-based Pearl Group, the staff strength at the BPO arm of TCS is expected to scale up to 4,500 people. It is planning to start the UK operations by the end of April.