 |
| Ramodorai: Ambitious |
New Delhi, Nov. 28 (PTI): Tata Consultancy Services (TCS) aims to end this fiscal with a $4-billion revenue, which will require a 30 per cent growth rate over the next two quarters.
“We have a target to achieve $4 billion revenue by the end of this fiscal, growing at 30 per cent. For the last five years, we have been recording a compounded annual growth rate of over 30 per cent,” TCS managing director S. Ramadorai said on the sidelines of a Nasscom conference.
The TCS scrip closed at Rs 1149.60 on the BSE today against Rs 1157.75 on Monday.
TCS, a Tata group company, ended 2006 with a revenue of $3 billion. Consolidated revenues of the company for 2005-06 was Rs 13,386.23 crore ($3 billion). The company expects to achieve the vision 2010 target of $10-billion revenue. “The year 2010 is still sometime away … We have had a CAGR of over 30 per cent. We can achieve it,” he said.
The company had earlier won a $90-million Qantas deal. It is a seven-year deal and the largest ever for an Indian IT company in Australia. Satyam also won this contract along with TCS. But with Qantas being approached for takeover by the Australian investment bank Macquarie and Texas Pacific, it is still early for a clear picture to emerge and to take a final call on this deal, said an analyst.
TCS earlier said it would raise its billing rates for existing contracts, up for renewal, by 3-5 per cent; while for fresh contracts, the rates will be higher by 5-10 per cent. The move, depending on the nature of the contract, will have an impact on its topline.
The company, which recently bagged a $100-million outsourcing deal from US-based healthcare firm Kimberley Clarke, is close to bagging a multi-million-dollar deal from the IMF. However, it’s still awaiting confirmation.
Ramadorai declined to comment on the sustainability of the margins, which improved 300 basis points in the second quarter. The company also bagged a deal from Eli Lilly to establish a medical information science centre in India to advance Lilly’s clinical research and development. The deal is believed to be a multi-year engagement worth $35 million.
In one of the largest-ever outsourcing deals last year, TCS had won a contract from ABN Amro. The company improved its margins by over 300 basis points by ensuring revenue growth matches with profitability benchmarks.