Mumbai, India-based Tata Consultancy Services (VARBusiness 500 rank 32) experienced strong growth in fiscal 2007, partly the result of significant investments to diversify revenue and grow in new markets as well as develop new solutions and services, said S. Mahalingam, TCS chief financial officer and executive director. Total revenue at the solution provider hit $5.7 billion -- up 33 percent year over year.
The company is also seeing some payback from its investment in new delivery centers in India, the United States, Mexico and Morocco, Mahalingam said. He further credited his company's prudent financial and treasury management with its ability to retain net margins at 22 percent, despite an environment in which the rupee has appreciated 11 percent. TCS' cost of revenue remained at the same level as last year.
N. Chandrasekaran, chief operating officer and executive director focused on the solution provider's success in gaining new business. In the past year, TCS closed 20 deals in excess of $50 million and added 212 new customers. In addition, new growth service lines spanning BPO, assurance, infrastructure services and consulting caused service revenue to grow percent to $ 1.1 billion.
"Our significant deal wins in the last few quarters across sectors and markets and a healthy deal pipeline will drive our ramp ups to deliver growth next year," said Chandrasekaran. "In addition to the major markets, we are also well positioned to deliver growth in new growth markets like Asia-Pacific, India, Middle-East and Latin America."
For the full year, the company reported a net income of $1.25 billion " 32 percent more than the same period a year ago.
Employee growth increased as well. The company hired 35,672 employees, resulting in net additions of 22,116, bringing total employee count to 111,407.
