TCS = Q1 FY 11 RESULT = EXCELLENT PERFORMANCE = GOOD CLIENT ADDITION = FY 11 TO FURTHER IMPROVE

TATA CONSULTANCY SERVICES

Q1FY11 RESULTS

COMPARISON

TCS has produced an excellent set of results for Q1 FY11 – compared to the corresponding quarter of Q1 FY10.

Net Sales has increased by 14.3% in Q1 FY11 to Rs.6411 Cr – compared to Q1 FY10 (Rs.5610 Cr).

Total Expenditure        has increased less than proportionately by 11.9% to Rs.4664 Cr in Q1 FY11 – compared to Q1 FY10(Rs.4169 Cr)

Net Profit has increased by a good 21.9% in Q1 FY11 to Rs.1556 Cr – from Q1 FY10 (Rs.1276 Cr)

Basic EPS is also up by 21.8% to Rs.7.93 in Q1 FY11 – from Q1 FY10 (Rs,6.51) – on a face value of Rs.1

As earlier, TCS is proposing to maintain interim dividend of Rs.2 (200%) on Face value of Rs.1- for this quarter also.

Business Highlights

for Q/E June 30, 2010:

    * Gross Addition of 10,849 Employees (Net Addition of 3,271 employees)

    * 36 New Clients added

Chief Executive Officer and Managing Director, N Chandrasekaran said: “This has been a quarter of complete outperformance. 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 services strategy.” He added:  “While we remain alert about changing macro dynamics in many markets, our customer-centric business model is very relevant and helps us participate in the ongoing recovery.”

S. Mahalingam, Chief Financial Officer and Executive Director, said: The structural strength of our business model has been highlighted during this quarter. 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 service 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.

Key Wins:

    * Development  project in the area of Supply Chain and Merchandizing  from a large Food Retailer in UK

    * Multi-year global deployment and support engagement of an enterprise solution package  for a large US based manufacturing and services firm

    * Strategic Partner to a large media company to help transform IT operations in a deal worth over $100M. TCS will be providing integrated Infrastructure and Applications Services to help the customer transform its IT operations into a centralized shared services delivery organization

    * Implementation of a transformation program for a state utility in India in an engagement  valued over Rs 250 crore

    * Multi- year contract with a Europe-based global mobile service provider to provide solutions that increase agility and responsiveness to customers

    * Strategic partner for a leading global medical devices company in a multi- year, multi-million dollar deal for IT Applications and end-to-end infrastructure outsourcing.

    * Strategic engineering services partner for a leading storage company in a multi-million dollar, multi-year contract for providing product quality assurance and infrastructure management services

 RESULTS IN FIGURES :

TCS(NON CONSOL)	Jun-10	Dec-09	Sep-09	Jun-09	Dif%
Net Sales	641095	588339	574440	560960	14.3
Employees Cost	225942	193178	198872	195857	15.4
Depreciation	11460	11841	11897	11320	1.2
Other Expdr	229018	210324	208330	209680	9.2
Total Expenditure	466420	415343	419099	416857	11.9
Profit(operations)	174675	172996	155341	144103	21.2
Other Income	3643	4036	-2536	126	2791.3
Interest	194	251	142	144	34.7
Profit before tax	178124	176781	152663	144085	23.6
Tax expense	22483	21361	17903	16441	36.7
Profit after tax	155641	155420	134760	127644	21.9
Net Profit	155641	155420	134760	127644	21.9
Dividend (%)	200	200	200	200	0
Face Value .Rs	1	1	1	1	1
Paid Up Equity	-	-	-	-
Basic EPS	7.93	7.93	6.87	6.51	21.8

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