* Net Income up by 8.69 % Q-on-Q
Highlights for Quarter Ended December 31, 2005 * Revenues at Rs. 32,646 million ($725 million) up by 10.61 % Q-on-Q * Net Income at Rs. 7,319 million ($163 million) up by 8.69 % Q-on-Q * EPS up from Rs. 14.03 in Q2 to Rs. 15.24 in Q3 * 83 new customers added in Q3 * 7,348 associates joined the company in Q3 * TCS Acquires FNS in Australia, Comicrom in Chile * TCS clinches largest ever BPO-deal valued at $847 million from UK's Pearl Group * Third Interim Dividend of Rs 3 per share announced
Strong growth across geographies and key verticals, driven by new client wins and committed ramp ups from engagements won in previous quarters, helped TCS post a stellar performance for the quarter ended December 31, 2005. The company also witnessed excellent wins during the quarter that will drive growth in the future.
TCS reported revenues for the quarter ended December 31, 2005 at Rs. 32,646 million ($725 million) versus Rs. 25,784 million ($593 million) for the corresponding quarter last fiscal. Net Income stood at Rs. 7,319 million ($163 million) for the quarter ended December 31, 2005 versus Rs. 7,066 million ($162 million) for the corresponding quarter last fiscal.
Commenting on the company's performance in Q3, CEO and MD of TCS, Mr. S Ramadorai said: "Solid volume growth on the back of key customer wins we had during earlier quarters, as well as significant domain-led engagements in verticals like BFSI, Retail and Utilities continued to fuel TCS' progress in Q3."
Mr. Ramadorai added: "TCS has emerged as a full-services player in the industry and laid a strong foundation for future growth through key strategic moves in transaction-based BPO and the banking products space. We are already winning deals that validate our strategy and will help us accelerate growth."
Big Wins * A U.S. Consumer goods major selected TCS as its strategic IT partner in a multi-year deal valued at $40m. * A leading U.S. P&C Insurer selected TCS as its IT outsourcing partner. * A North American BFS major chose TCS for a multi-year, multi-phase CRM implementation deal to enable a unified view of its customers for better post-sales services and opportunity to cross sell and up sell. * A leading U.S. Retail Chain selected TCS for BPO services across multiple business processes. * A leading European manufacturer of advanced materials selected TCS to set up a Global Competency Center to support its SAP footprint in 30 countries. * A leading Asian oil refining and marketing firm chose TCS to implement a RFID-based vehicle tracking system. * A leading Latin American Telecom provider awarded a multi-million dollar contract for ADM services delivered out of TCS Uruguay. * A Latin American government organization selected TCS for a 100+ person years engagement for developing a service-oriented architecture-based solution for a treasury and budget management system. TCS-Banking Solutions
TCS' integrated Banking and Financial Services assets portfolio is gaining very encouraging traction in the market place.
* Subsequent to the strategic acquisition of Australian banking products company FNS, TCS has secured three significant global wins in the core banking solutions arena: -- A large public sector bank in India -- A large private sector bank in China -- A large private sector bank in Russia * Quartz was selected by a leading private bank in Europe for Investment Management Operations. * TCS' brokerage solution was selected by the brokerage arms of two global banks during Q3. * TCS' clearing and settlement depository solution was selected by a leading Middle East Exchange. * TCS' anti-money laundering solution has been selected by a large public sector bank in India. * TCS' custody solution (NCS) was selected by Depository Trust Clearing Corporation (DTCC) in the U.S. for its corporate action platform TCS-BPO
TCS has set up the strategic platform required to drive high growth from its BPO offerings during FY 2006-07.
* TCS firmly established itself in the "Life Insurance & Pensions" BPO space using its proprietary IIMS platform after clinching an engagement with the Pearl Group in the UK for US $847m during the quarter. * The acquisition of Comicrom in Chile further strengthened the company's presence in the Insurance pensions and Banking BPO. * The company will provide BPO services across multiple business processes including Finance & Accounting, Merchandising and Customer Care for a large US-based retailer. * In all, the company has 4,598 associates in its BPO operation including 2,207 associates between its UK and Chile operations. Capturing Value
TCS' Engineering and Industrial Services (EIS) witnessed strong demand with the addition of 12 new customers in Q3 resulting in a total of 315 active customers.
* TCS continues to grow its dedicated team of EIS consultants and has over 3,400 associates in this practice. * TCS has partnered with the world's leading enterprise application software maker to provide solutions for integrating plant information systems with enterprise systems. * Key engagements during Q3: -- A global leader in micro turbines engaged TCS to provide engineering and plant automation services. -- TCS successfully completed a PLM implementation for an Asian power equipment manufacturer which resulted in 25 percent reduction in design cycle time.
Demand for TCS' Assurance Services continues to be strong from existing and new customers. With the addition of eight new customers in this quarter, TCS now provides assurance services to 72 customers.
* The "Testing Center of Excellence" has been very well received by our customers and TCS currently operates dedicated Testing CoEs for 25 customers. * TCS' differentiated positioning is strengthened with the introduction of new services like "Enterprise Test Strategy Consulting" and "Business Acceptance Testing." * Key engagements during Q3: -- For a major Health Service network in UK, TCS is developing an automated validation framework for their Partner Integration initiative, resulting in faster enrollment of new partners. -- For a major healthcare service provider in U.S., TCS delivered an Automated Test Bed, leading to quality improvement and 80 percent reduction in test cycle time.