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TCS revenue at Rs 41.87 billion

BS Corporate Bureau

The mystery surrounding the revenues of Tata Consultancy Services is finally over. TCS said its revenues stood at Rs 41.87 billion for the year ended March 31, 2002.

This is 35 per cent higher than its revenues of Rs 31.43 billion for the previous year.

This is the first time that TCS, a division of Tata Sons, has made public its revenue figures. However, the company has still not divulged its profits for the year.

"Our profitability is in line with that of the top Indian software companies. We are working on the final numbers," TCS executive vice-president Phiroz Vandrevala said.

The revenues of Rs 41.87 billion do not include the revenues from CMC Ltd, a company acquired by TCS in October 2001. For the financial year ended March 31, 2002, CMC's revenues stood at Rs 5.60 billion.

If this is taken into account, TCS' revenues for the year ended March 31, 2002, would be Rs 47.47 billion.

The combined revenue is Rs 12.65 billion more than that of Wipro and Rs 21.44 billion more than that of Infosys.

According to Vandrevala, the company is looking at a revenue growth in line with the growth of the Indian software industry. "We will grow at least in line with the industry growth rates," he said.

Stating that TCS had started work on its proposed initial public offering, Vandrevala said, "We are working on migrating to US GAAP at present. We will come out with the exact numbers soon."

He said the company would have to do a lot of preparatory work in the areas of accounting, manpower and revenue analysis.

He, however, declined to comment on the timing of the IPO saying, "No time-frame can be fixed at this point of time as preparations have just started."

He said the corporatisation of TCS--TCS is currently a division of Tata Sons--would happen just prior to the IPO. "Work is on. The formulation of the company would happen just before the IPO," Vandrewala said.

TCS is also on a hiring spree. The company is targeting to appoint at least 3,000 people in the current financial year.

"We will meet this target by a mix of campus and direct recruitment. We think we will induct about 2,500 people from campuses."

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