7:30PM Mumbai - TCS revenue rises 8.4%.

Quarterly Earnings Review

Tata Consultant Services revenue surged 8.4% during the third quarter ended December 31, 2007, to reach an all time record high at 48,605 crore rupees from 34,526 crore rupees made a year earlier, on the back of large wins and ramp ups.

Third quarter income rose 11.4% to 11.047 core rupees, from 7.502 crore rupees in the previous comparable period.

TCS said that after tax profit during the quarter surged 9.6% to 1,019 crore rupees from 770 crore rupees made a year earlier.

Earnings per share were up from 7.67 rupees during the third quarter ended December 31 2006 to 11.3 rupees in the period under review.

TCS improved its operating margins despite a 2.3% appreciation in the rupee against the US dollar during the third quarter.

The company’s CEO and MD S. Ramadorai said: ""We''ve had another quarter of exceptional performance. TCS has become the first Indian IT company to clock $1 billion in revenues in a single quarter and has crossed the $3 billion mark in the first three quarters alone.""

""This shows that TCS'' full-services model is delivering sustained profitable growth quarter on quarter in the midst of a dynamic operating environment.""

""TCS has delivered on the order pipeline and closed five deals of over $50 million in the third quarter. Our full-services model is in high gear and our large accounts are engaging us for new services in significant deals,""

Nine-Month Earnings Review

In dollar terms, revenue in the quarter grew 40.9% from a year ago to $3 billion.

In addition, Net Income advanced 47.3% to $ 250 million.

Revenue

In the quarter, revenue obtained from international business sales climbed 9.04% to 44.777 crore rupees from 30.432 crore rupees in the previous comparable period.

However, revenue obtained from India business plunged 1.87% to 3,828 crore rupees from 4,093 crore rupees made a year earlier.

In the quarter, the company concluded 5 large engagements worth over $150 million, a development that lifted the TCS revenue.

Despite external challenges, the banking and financial services vertical witnessed strong growth in the quarter, with the revenue share increasing sequentially.

The travel and hospitality as well as the energy and utility verticals also grew faster than the average company growth rate.

Outlook