It has been another milestone year for your Company in 2011-12 with
strong performance across all dimensions. It has been made all the
more memorable with the organisation achieving the-billion mark in
revenue at the end of the financial year. This has been made possible
by the sustained performance by all teams and units across the world.
On a consolidated basis, revenue for 2011-12 grew by 31% to Rs 48,894
crore (.17 billion), driven by customer demand for our holistic
portfolio of services and solutions. Your Company continued to sustain
its profitability, despite a volatile external environment. The net
profits grew by 15% to Rs 10,413 crore.
We have continued our practice to consistently reward our shareholders
with a higher dividend. This year our dividend payout is Rs 25 per share
including Rs 8 proposed as final dividend and Rs 8 proposed as special
dividend. The earnings per share for the Company increased to Rs 53.07.
During the financial year 2011-12,your Company wasable to capture the
business momentum, with all markets and the industries in which it
operates growing in double digits. Our strategy to partner with
customers and co-create solutions to drive optimisation and agility
across the enterprise is yielding results for our customers. New
service lines like Infrastructure Services, BPO and Enterprise
Solutions gained global scale during the year with each service line
clocking more than $ 1 billion in annual revenues. All other service
lines also performed admirably with each growing by double digits.
Your Companys ability to grow in a rapidly evolving external
environment is due to its customer-centric approach, balanced nature of
the business portfolio and presence across all regions. Global
corporations want to optimise as well as innovate to drive agility and
growth in their business. Your Company is well placed to help them in
multiple parts of their business with its deep domain knowledge, global
scale and industry-leading solutions. This momentum is reflected in
customer metrics as well as the increasing holistic nature of the
customer wins. Over the last 12 months, your Company added 141 new
customers across the world to take its active customer base to 1076.
The movement of customers across each revenue band from million
onwards has been very positive, including growing the number of 0
million customers to fourteen from eight in the previous year.
As we continue to meet customers across the world, we remain convinced
of the huge potential of your Company in the global market with
potential for growth in every industry segment, service line and
market. The key will be our ability to remain relevant to our
customers, understand their business needs and perform with rigor to
meet those needs.
Across multiple industries globally, technology spend is increasing
moving from the back-end of the business - where it brought in
efficiency - to the front-office, where it is being leveraged to gain
consumer/customer insights and drive growth. Emerging technologies like
cloud computing, big-data analytics and social media backed by 3G and
4G technologies is driving this transformation at customer touch points
across industries. Your Companys early investments in these
game-changing technologies are enabling it to play an increasingly
strategic role in this transformation and help customers prepare for
the future and drive growth.
With a fast expanding organisation that has inducted and integrated
70,400 professionals in the past 12 months, your Company continues to
be recognised as a benchmark brand for learning and development of young
IT professionals. Your Companys continued success is due to the
dedication, commitment and performance of 2,38,583 energetic
professionals, who remain its biggest asset. Efforts to continuously
engage with this base of professionals as well as create comprehensive
career paths has helped increase our talent retention rate to 87.8% -
the highest in the Indian IT industry. We continue to invest in their
development and capabilities through training in new technologies,
domain and processes in a modeof engaged collaboration.
Innovation through strong research and development continues to be a
major focus area for your Company. We are increasing our investment in
many areas including new sensor-based technologies, intelligent
infrastructure, platforms for genomics research, information fusion for
enterprises and green technologies.
This is resulting in more Intellectual Property Rights (IPR) being
generated by your Company. We have increased our patent filings
significantly and 460 patents were filed in several countries in
2011-12. Until now, cumulatively, TCS has filed 855 patent applications
of which 72 have been granted.
Your Company continues to invest in sustainable infrastructure and
campuses that are world-class and intelligent. It added over 24,700
seats during the year in its centres.
Your Company was recognised by industry, customers and media for
excellence along many dimensions including overall financial
performance, human resources, sustainability, investor relations,
infrastructure, communications and governance. The Company received
multiple awards during the year.
Looking ahead to 2012-13, global macro-economic challenges persist. The
world is witnessing slower GDP growth as well as slower job growth
across developed and emerging markets. Currency volatility
continues. These issues are likely to cloud prospects in the short-term.
However, this is not a new phenomenon and global corporations recognise
that they need to be nimble to adapt to changes in the environment.
Your Company is strategically partnering with many customers across
different areas of their business to help them in this process.
On behalf of the entire Company and its leadership team,
I want to thank each shareholder for their support and commitment to
the Company. It is the support of shareholders that has helped make TCS
among the most valuable companies in India. I look forward to your
continued support as your Company embarks on the next
phase of its growth journey.
Chief Executive Officer and Managing Director