TCS plans Rs 2,300 crore capital expenditure

NEW DELHI, INDIA: India's largest software firm, Tata Consultancy Services (TCS), has said it intends to spend Rs 2,300 crore as capital expenditure during the current financial year. The firm also said it would look for acquisitions.

"TCS would consider investments or acquisition opportunities in some of the market areas as and when they arise. The company would consider increasing its market share in Latin America, the Middle East and in Asia apart from the US and Western Europe," TCS chairman Ratan Tata said in its annual general meeting.

Speaking about attrition rate, the company said that at 14 per cent, though its attrition rate had increased compared to the previous year, it was lowest in the industry.

At the end of March 2011, the company had a total employee strength of 198,614 -- making it the largest private sector employer in the country. The company said that it would be hiring around 60,000 people in 2011-12.

During financial year 2010-2011, North America contributed 54 per cent of the company's revenue along with significant growth across various geographies, including Latin America, Middle East and Africa apart from India.

Total revenue of the software firm for 2010-11 crossed $8 billion. In terms of revenue generated from business segment, the banking and financial services segment contributed 47 per cent of the company's revenue, followed by other segments including retail, hi-tech life sciences and utilities.

The company also said that currently it does not have any plans of listing its shares on the foreign exchange.

The company's dividend has gone up from Rs.10 per equity share to Rs.14 per equity share. The dividend paid by TCS is 36.7 per cent and by Infosys is 29.4 per cent.

At the Bombay Stock Exchange, the shares of the company closed 3.66 per cent lower at Rs.1,056.70.