India's largest software firm Tata Consultancy Services has announced its first quarter results. The company's first quarter net profit is up 33.02 per cent at Rs 630 crore (Rs 6.30 billion) over the previous quarter.
TCS reported total revenues for the quarter ended June 30, 2005 at Rs 2,721.02 crore (Rs 27.210 billion) versus Rs 2,184.52 crore (Rs 21.845 billion) for the corresponding quarter last fiscal.
Strong International demand for its core IT and consultancy services business helped TCS make a strong start to the current financial year with significant growth in all its core service segments across all geographies.
Significant deals were closed in application management, package implementation services as well as assurance and performance enhancement services as demand grew across geographies.
Commenting on the sterling performance in Q1, CEO and MD of TCS, S Ramadorai said: "TCS continues to drive along its high growth path and there has been great traction for our IT, BPO and Engineering services across geographies and industry verticals."
"We are scaling up our global execution capability to implement our growth strategies and create value for customers," he added.
Big wins
A leading global US-based financial services firm selected TCS as its strategic IT provider on a contract worth US $100 million.
A global auto major engaged TCS for product engineering services. In another significant EIS deal, a leading US-based semiconductor production equipment maker engaged TCS to implement a PLM solution.
One of the largest global apparel retailers selected TCS as strategic partner for a range of IT services.
One of Europe's largest telecom groups signed up with TCS for developing corporate solutions within the HR domain to standardize and consolidate their ERP environments.
A leading European bio-tech firm selected TCS for structure-based optimization solutions for drug discovery.
TCS' platform-based BPO solution was adopted by two major telecommunication service providers and another Fortune 500 manufacturing company selected TCS' BPO for providing F&A services.
TCS' differentiated strategy to develop its BPO business through domain and platform-based solutions has been well accepted by the market and validated by client wins.
The company won 5 new BPO deals during Q1 across the Banking, Telecom and Hospitality verticals. Three existing customers have committed significant volume growth during the next 12 months and the company has created an additional capacity of 4000 seats to plan for this growth.
2,690 new employees
There was a net addition of 2,690 employees in Q1. 3913 associates joined the organisation and 1223 employees left the organization. TCS' attrition rate was 8.2 per cent for the trailing 12 months, the lowest in the Indian IT industry.
During the year, the company plans to add 13,500 associates in the current fiscal year in India and 2,000 associates in overseas geographies.
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