India's TCS breaks US$4B revenue mark
update India's IT services giant Tata Consultancy Services (TCS) hit a milestone this week, crossing US$4 billion in revenues for the first time.
For its latest financial year ended Mar. 31, 2007, TCS reported a 41 percent year-on-year revenue increase to US$4.3 billion on net income of US$950 million.
Explaining the revenue growth, TCS CFO S. Mahalingam said in a statement that the company carried out "several levers in terms of pricing, offshore leverage and cost controls" to boost its profit margins in light of a fluctuating rupee.
The company identified several service segments as high-growth drivers, including infrastructure, consulting and business intelligence services, which grew by more than 100 percent over the past year and currently contribute 18 percent to TCS revenues.
The services provider also scored several major customer wins in the last year, such as its US$146.6 million deal with Australian airline Qantas Airways, a US$100 million five-year contract with Bank of China, and deals worth US$3.3 million deal and US$3.9 million with Singapore's Temasek Holdings and Parkway Group Healthcare, respectively.
N. Chandrasekaran, TCS' head of global sales and operations, said: "Our full-services play...is translating into a very healthy pipeline leading to growth across services and domains in mature and emerging markets. Last year's large wins are ramping up as planned."
To cope with the demand, TCS said, it added 22,750 employees in the past year and currently has a staff strength of over 89,400 professionals from 67 different nationalities across 47 countries.
With a compound annual growth rate of 48 percent over the last three years, the Asia-Pacific region, including Japan, Australia and New Zealand, was the company's fastest growing market.
And this growth momentum is expected to continue over the next few years, Girija Pande, executive vice president and head of TCS Asia-Pacific, told ZDNet Asia.
"Over the last year, we made significant investments in Asia-Pacific, including the acquisition of Australian business consultancy firm TCS Management," Pande said.
He added that TCS also set up a near-shore delivery center in Singapore to support the company's banking and financial services customers in the region, and established joint venture company TCS China with the Chinese government.
Last month, the company announced it will embark on a marketing initiative to raise its corporate profile and focus on providing assurance to customers that the IT project deployed will benefit their business.