TCS - first Indian IT firm to cross $2 b rev

MUMBAI: TCS has become the first Indian IT company to cross $two billion in revenues and $.5 billion in net profits. The company reported revenues at Rs 9,727 crore for the financial year ended March 31, 2005, up 36.57 percent Y-on-Y. The company's net profits stood at Rs 2,256 crore - up 37.81 percent Y on Y.

The company also informed that its wholly owned subsidiary in Sweden, Tata Consultancy Services Sverige AB has acquired 100 percent stake in Swedish IT Resources AB ('SITAR'), a sales and marketing partner of the company in Sweden.

CEO and MD of TCS S Ramadorai said, "Consistent with our position as the pioneer of the Indian IT industry, TCS is proud to be the first IT company to cross the $two billion milestone. Through our strategic initiatives we have managed to double our revenues in the last two years. We are alive to the challenges facing the industry and are geared to enhance our leadership position."

The company's domestic revenues at Rs 1,141 crore, crossing the Rs 1,000 crore mark, contributed to 11.73 percent of total revenues. TCS added 10,871 employees in FY05 and maintained excellent employee retention with eight percent attrition.

TCS achieved sequential growth in all geographies where it operates and added 256 new clients during the year, taking the active number of clients to 516. Also in terms of the Scheme of Arrangement as sanctioned by the High Court of Judicature at Bombay, the TCS Division has been transferred to and vested in the company as a going concern with effect from April 01, 2004.

The Board of Directors has recommended a final dividend of Rs five- per equity share of Re one each of the company for approval by shareholders of the company at the forthcoming Annual General Meeting of the company. This would be in addition to the first interim dividend of Rs three per share and the second interim dividend of Rs 3.50 per share paid during the year.