The board of directors of the company has declared a dividend of Rs.2 per share.
TCS CEO and Managing Director N. Chandrasekaran said, “this has been a quarter of complete outperformance. This has been our best performance in terms of growth since September 2008. Our balanced growth was driven by disciplined execution and strong demand across markets and industry sectors. Our holistic growth across service lines highlights the growing traction among corporations for TCS' full service strategy. While we remain alert about changing micro dynamics in many markets, our customer-centric business model is very relevant and helps us participate in the ongoing recovery.''
Mr. Chandrasekaran said the growth had happened in spite of “headwinds due to salary hikes and currency fluctuations particularly in the euro and the sterling pound with both factors carrying negative impact of around 36 basis points. We have a robust deal pipeline and are chasing 10-15 large deals. There are opportunities for pricing increases as the environment is stable.''
“The structural strength of our business model has been highlighted during this quarter,'' said company CFO and Executive Director S. Mahalingam.
“Our ability to execute in an optimal fashion through continuing off-shore shift and disciplined pricing have mitigated the impact caused by wage and currency headwinds and helped us post a strong margin performance. Our investments in building an extensive front office presence in new markets is helping support and sustain higher growth.''
All industry sectors made good contribution to the company's growth. In terms of service lines, there was balanced growth across IT and other new services lines like BPO, infrastructure services and assurance.
In terms of markets, North America and Asia led the momentum for growth, and all other markets grew in constant currency terms.
Mr. Chandrasekaran said “we have done well across all geographies and even India grew at 6 per cent. We would like to get continuous growth in India and have broken out of the cyclical growth pattern here over the last three quarters.''
During the quarter, the company filed 26 patent applications and was granted one in the area of object oriented models. Till date, the company has applied for 323 patents and has been granted 61.
In terms of human resources, utilization in the first quarter was 82.6 per cent (excluding trainees) and 74.8 per cent (including trainees). The company had a gross addition of 10,849 employees (net addition of 3,271 employees). The attrition rate during the quarter for IT services was 12.3 per cent while for BPO services it was 20 per cent and the overall attrition was at 13.1 per cent against 11.8 per cent.
At the end of the quarter, the total employee strength of the company was at 163,700.
“We have decided to increase the hiring target to 40,000 for 2010-11, an increase of 10,000 from the previous estimate given the strong deal momentum and continuing ramp ups. We continue to focus on retention as it is the key and we would like to control attrition,'' said TCS Vice-President, Head, Global Human Resources Ajoy Mukherjee.
From July, TCS will hike wages in India by about 10 per cent, 2-8 per cent in emerging markets and 2-4 per cent in other markets.
(from Business Line)