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Broad-based growth drives Q3 performance for TCS

Zafar Anjum | Jan. 18, 2012
In the growth markets, Latin America showed significant momentum followed by India and Asia-Pacific.

TCS, India's largest outsourcer, has posted a strong financial performance in the quarter ended Dec. 31, 2011.

The IT services company disclosed its consolidated IFRS (International Financial Reporting Standards) financial results on Tuesday (17 Jan) in Mumbai, India.

According to TCS, the company's revenues stood at US$2.59 billion, up 20.6 percent year on year (Y-o-Y) and net income at $568 million up 9.1 per cent Y-o-Y.

The company reported growth across all markets. "Growth has been broad-based with all markets and all industries contributing substantially," said TCS CEO and MD, N Chandrasekaran. Among mature markets, Europe led the growth story, followed by the US. In the growth markets, Latin America showed significant momentum followed by India and Asia-Pacific.

"We have increased our operating margins significantly by taking the benefits of growth, exchange movements and by keeping a strong focus on cost management," said TCS CFO, S. Mahalingam. The company's operating margins were up by 213 basis points at 29.2 per cent.

The company netted ten large deals in the quarter, including a deal with a large telecom service provider in Asia Pacific (as its strategic BPO partner covering order-to-activate and billing processes).

TCS said that as of 31 December 2011, the company has applied for 650 patents and has been granted 70 patents. During this quarter the company has been granted 2 new patents.

In the human resources front, the total employee strength of the company was 226,751 with a gross addition of 18,907 employees at the end of Q3. The attrition rate in this quarter fell further to 12.8 per cent.

"Attrition continued to fall for the second quarter in a row to 12.8 per cent as TCS remained the employer of choice in a dynamic market," said Ajoy Mukherjee, executive vice president and head, Global Human Resources.


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