16th Oct 2009

Results for Quarter II FY 2009 - 10

16th Oct 2009 2

Disclaimer

Certain statements in this release concerning our future prospects are forward-lookingstatements. Forward-looking statements by their nature involve a number of risks anduncertainties that could cause actual results to differ materially from market expectations.These risks and uncertainties include, but are not limited to our ability to manage growth,intense competition among Indian and overseas IT services companies, various factorswhich may affect our cost advantage, such as wage increases or an appreciating Rupee,our ability to attract and retain highly skilled professionals, time and cost overruns onfixed-price, fixed-time frame contracts, client concentration, restrictions on immigration,our ability to manage our international operations, reduced demand for technology in ourkey focus areas, disruptions in telecommunication networks, our ability to successfullycomplete and integrate potential acquisitions, liability for damages on our servicecontracts, the success of the companies in which TCS has made strategic investments,withdrawal of governmental fiscal incentives, political instability, legal restrictions onraising capital or acquiring companies outside India, unauthorized use of our intellectualproperty and general economic conditions affecting our industry. TCS may, from time totime, make additional written and oral forward-looking statements, including our reportsto shareholders. These forward-looking statements represent only the Company’s currentintentions, beliefs or expectations, and any forward-looking statement speaks only as ofthe date on which it was made. The Company assumes no obligation to revise or updateany forward-looking statements.

16th Oct 2009

Financial Performance

16th Oct 2009 4

Indian GAAP Growth Summary

Total Income 7,435 7,207 6,953

% Growth Q-o-Q 3.17%

% Growth Y-o-Y 6.93%

PBIDT (before Other Income) 2,118 1,965 1,820

% Growth Q-o-Q 7.80%

% Growth Y-o-Y 16.36%

Profit After Tax 1,642 1,534 1,271

% Growth Q-o-Q 7.08%

% Growth Y-o-Y 29.17%

Consolidated Indian GAAP (INR Crore) Q2 FY10 Q1 FY10 Q2 FY09

16th Oct 2009 5

US GAAP Revenue Growth

Total Revenue 74,351 72,070 69,534

% Growth Q-o-Q 3.16%

% Growth Y-o-Y 6.93%

Revenue from International Business 68,958 65,506 64,098

% Growth Q-o-Q 5.27%

% Growth Y-o-Y 7.58%

Revenue from Indian Business 5,393 6,564 5,436

% Growth Q-o-Q -17.83%

% Growth Y-o-Y -0.79%

Consolidated US GAAP (INR Million) Q2 FY10 Q1 FY10 Q2 FY09

16th Oct 2009 6

US GAAP Growth Summary

16th Oct 2009

Operational Performance

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53.4%

5.0%

16.5%

10.6%

7.3%5.3% 1.9%

North America

Ibero America

UK

Continental Europe

India

Asia Pacific

MEA

Growth by Market

Americas

North America 53.4 52.3

Ibero America 5.0 4.6

Europe

UK 16.5 16.9

Continental Europe 10.6 11.0

India 7.3 9.1

Asia Pacific 5.3 4.3

MEA 1.9 1.8

Total 100.0 100.0

Geography (% ) Q2 FY10 Q1 FY10

• Strong market presence helps

TCS capitalise on emerging US

recovery.

• Wins in Public Sector, Energy

and Retail help mute continued

weakness in UK.

• The challenging economic

environment in Europe is

putting pressure. Large wins in

Retail and Utilities suggests

return to decision making in

Europe.

• Focus on emerging markets

helps drive above average

growth across the regions.

16th Oct 2009 9

45.0%

12.0%

12.0%

8.7%

4.8%

6.0%

3.5%2.8%2.2%

3.0%

BFSI

Telecom

Retail & Distribution

Manufacturing

Hi-Tech

Life Sciences & Healthcare

Travel & Hospitality

Energy & Utilities

Media & Entertainment

Others

Growth by Domain

BFSI 45.0 43.9

Telecom 12.0 12.6

Retail & Distribution 12.0 12.2

Manufacturing 8.7 9.2

Hi-Tech 4.8 4.9

Life Sciences & Healthcare 6.0 5.7

Travel & Hospitality 3.5 3.7

Energy & Utilities 2.8 2.7

Media & Entertainment 2.2 2.2

Others 3.0 2.9

Total 100.0 100.0

Q2 FY10IP Revenue (%) Q1 FY10

• BFSI segment continues to out

perform, leading recovery in

all geographies

• Telecom, Hi-Tech and

Manufacturing continue to

register negative growth in this

quarter.

• Life Sciences & Healthcare,

and Energy & Utilities record

better than average growth

with visible traction in all

major markets.

16th Oct 2009 10

49.6%

5.7%

10.3%

4.8%

5.0%

8.0%

1.6%3.2%

11.8%

Application Development & Maint.

Business Intelligence

Enterprise Solutions

Assurance Services

Engineering & Industrial Services

Infrastructure Services

Global Consulting

Asset Leverage Solutions

Business Process Outsourcing

Growth by Service Line

SP Revenue (%) Q2 FY10 Q1 FY10

IT Solutions and Services

Application Development & Maint. 49.6 48.7

Business Intelligence 5.7 6.1

Enterprise Solutions 10.3 10.9

Assurance Services 4.8 4.4

Engineering & Industrial Services 5.0 5.2

Infrastructure Services 8.0 9.3

Global Consulting 1.6 1.4

Asset Leverage Solutions 3.2 2.6

Business Process Outsourcing 11.8 11.4

Total 100.0 100.0

• Strong demand continues for

Application Development

and Maintenance Services.

• TCS BαNCS added 11 new

customers this quarter and 7

implementations went live.

• Assurance Services grew by

15% over last quarter.

• Pending budget decisions by

client saw delays in

enterprise solutions and

product implementation

spend.

16th Oct 2009 11

Client Parameters

Clients Contribution *

Revenue %

Top 1 6.8 5.7

Top 5 20.5 19.4

Top 10 28.9 28.0

US$ 1 mln Clients 409 423

US$ 5 mln Clients 171 178

US$ 10 mln Clients 111 113

US$ 20 mln Clients 62 59

US$ 50 mln Clients 23 23

US$ 100 mln Clients 6 6

* Last Twelve Months

Q1 FY10Q2 FY10

16th Oct 2009 12

Operational Parameters

Onsite 42.7 44.4

GDC/RDC 6.2 5.2

Offshore 51.1 50.4

Time & Material 52.8 52.6

Fixed Price & Time 47.2 47.4

* Excluding Domestic Clients

Revenue % Q2 FY10 Q1 FY10

Contract Type

Delivery Location*

16th Oct 2009 13

Client Acquisition and Expansion

Particulars Q2 FY10 Q1 FY10

Active Clients 896 933

New Clients 30 26

Revenue % from Repeat Business 98.2 99.7

Revenue % from New Business * 1.8 0.3

* Reset at the beginning of Financial Year

16th Oct 2009 14

Key Wins

A large global mobile device manufacturer who embarked on a supplier consolidation chose TCS as it’s

strategic partner with a deal value of around 150MUSD over multiple years.

In a 100+MUSD deal over multiple years, TCS has partnered with the world’s leading chemical

manufacturer to transform their global shared services organization by integrating it with TCS BPO

locations worldwide.

A leading North American financial institution has selected TCS BaNCS for their comprehensive

account management and payment functions

A UK based global energy company selected TCS as a strategic partner in transformation IT program

across the fuels value chain.

TCS Utilities BPO capability is being leveraged by a large European Utility company to assist it, in it’s

transformation program to improve customer experience, reduce cost and improve efficiency.

TCS has signed a multi million ecommerce deal with a leading UK retailer, to develop and enhance the

ecommerce capabilities and offerings of the retailer and support their strategic business expansion and

growth.

In a Rs 300+ Crores deal, TCS has been awarded 2 large deals by 2 prominent states in India for the

transformation of IT applications and infrastructure and in the e-governance space.

The world’s largest manufacturer of building materials and products has selected TCS for its global

infrastructure support and business process services, in a multi-million deal.

A leading pharmaceutical & healthcare market intelligence company has selected TCS as a strategic

partner in a multi million dollar deal to provide commercial analytics KPO services.

16th Oct 2009

Human Resources

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TCS Employees : 123,092

Overseas branches & subsidiaries: 9,732

Global/Regional Delivery Centers : 3,969

Subsidiaries* : 18,870

Total Employee Base: 141,962

* CMC, WTI, TCS e-Serve, Diligenta & others are now shown under ‘Subsidiaries’

FY09 - Q2 FY09 - Q3 FY09 - Q4 FY10 - Q1 FY10 - Q2

116,912125,629 126,150 123,404 123,092

4,6984,714

17,611 18,238 18,870

Employees in TCS Ltd. Employees in Subsidiaries

16th Oct 2009 17

TCS: Q2 (FY10) Gross Additions 3,836 & Net Additions (312)

• Additions:

• 1,820 Trainees & 1,189 Laterals in India; 827 in Overseas Branch

• Attrition: 11.4% (LTM), including BPO

• IT Services: 10.8% (LTM), BPO: 18% (LTM)

• Utilization Rate: 79.5% (excluding Trainees), 73.6% (including Trainees)

Q2 TCS + Subsidiaries : Gross Additions : 5,530 & Net Additions : 320

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British6.5%

Columbian2.1%

Chilean15.5%

Hungarian5.7%

Ecuadorian13.2%

Uruguayan7.2%

Brazilian11.2%

Chinese8.5%

American10.3%

Mexican7.4%

Others12.4%

Diversity

Composition of International Workforce

• 30% of our workforce are women

• 58% of our associates have more than 3 years of work experience

• Associates from 75 nationalities

16th Oct 2009 19

Campus Update

• 24,885 campus offers were made in FY09. 1,820 trainees joined in Q2

• Campus visits in FY10 would start in Q4 when students are in their last semester

16th Oct 2009

Annexure

16th Oct 2009 21

Indian GAAP Income Statement - Consolidated

INCOME

a) IT & Consultancy Services 7,199 6,942 6,667 96.82 96.33 95.88

b) Manufacturing, Sale of equipment and Licences 236 265 286 3.18 3.67 4.12

Total Income 7,435 7,207 6,953 100.00 100.00 100.00

EXPENDITURE

a ) Salaries & Wages 2,769 2,696 2,444 37.24 37.40 35.15

b ) Overseas business expenditure 1,110 1,094 1,287 14.92 15.19 18.51

c) Other operating expenses 1,438 1,452 1,402 19.35 20.15 20.17

Total Expenditure 5,317 5,242 5,133 71.51 72.74 73.83

Profit Before Interest, Depreciation, Taxes

& Other Income 2,118 1,965 1,820 28.49 27.26 26.17

Interest 4 4 6 0.05 0.05 0.08

Depreciation 166 158 139 2.23 2.19 2.01

Profit Before Taxes & Other Income 1,948 1,803 1,675 26.21 25.02 24.08

Other income (expense), net (8) 26 (169) (0.11) 0.35 (2.43)

Profit Before Taxes 1,940 1,829 1,506 26.10 25.37 21.65

Provision For Taxes 277 278 220 3.73 3.85 3.17

Profit After Taxes From Operations 1,663 1,551 1,286 22.37 21.52 18.48

Minority Interest (21) (17) (15) (0.28) (0.24) (0.22)

Net Profit 1,642 1,534 1,271 22.09 21.28 18.26

Q2 FY10 Q1 FY10 Q2 FY09 Q2 FY10 Q1 FY10 Q2 FY09Consolidated Indian GAAP

INR Crore % of Total Income

16th Oct 2009 22

Indian GAAP Balance Sheet - Consolidated

30-Sep-09 31-Mar-09 30-Sep-09 31-Mar-09

Source of Funds

Shareholders' Funds 18,351 15,700 94.80 94.18

Minority Interest 315 277 1.63 1.66

Loan Funds 530 564 2.73 3.39

Deferred Tax Liability 162 129 0.84 0.77

Total Liabilities 19,358 16,670 100.00 100.00

Application of Funds

Fixed Assets (net) 4,291 4,190 22.17 25.13

Goodwill 3,280 3,261 16.94 19.56

Deferred Tax Asset 129 61 0.67 0.37

Investments 3,180 1,614 16.42 9.68

Cash and Bank Balance 3,020 2,698 15.60 16.19

Current Assets, Loans and Advances 11,235 10,814 58.04 64.87

Current Liabilities and Provisions (5,777) (5,968) (29.84) (35.80)

Net Current Assets 8,478 7,544 43.80 45.26

Total Assets 19,358 16,670 100.00 100.00

Consolidated Indian GAAPINR Crore %

16th Oct 2009 23

Revenue 74,351 72,070 69,534 100.00 100.00 100.00

Cost of revenue 40,311 39,238 37,752 54.22 54.44 54.29

Gross margin 34,040 32,832 31,782 45.78 45.56 45.71

SG & A expenses 14,509 14,940 14,934 19.51 20.73 21.48

Operating income 19,531 17,892 16,848 26.27 24.83 24.23

Other income (expense), net (144) 194 (1,784) (0.19) 0.27 (2.56)

Income before income taxes 19,387 18,086 15,064 26.08 25.10 21.67

Income taxes 2,909 2,655 2,291 3.91 3.68 3.29

Equity in net earnings of affiliates - (2) (7) - (0.00) (0.01)

Income after income taxes 16,478 15,429 12,766 22.17 21.42 18.37

Minority Interest 239 226 151 0.32 0.31 0.22

Net Income 16,239 15,203 12,615 21.85 21.11 18.15

INR INR INR

Earnings Per Share in INR 8.30 7.77 6.45

INR Million

Q1 FY10Consolidated US GAAP

Q2 FY09

% of Revenue

Q2 FY10 Q2 FY09Q1 FY10 Q2 FY10

US GAAP Income Statement

16th Oct 2009 24

COR – SG&A Details

16th Oct 2009 25

INR Million % INR Million %

Assets

Cash and Cash equivalents 15,886 6.27 14,839 6.49

Accounts Receivable 60,470 23.87 61,540 26.90

Unbilled Revenues 14,926 5.89 14,813 6.47

Other Current assets 38,750 15.29 31,860 13.93

Property & Equipment 38,616 15.24 37,490 16.39

Intangible assets and Goodwill 34,124 13.47 34,185 14.93

Investments 29,258 11.55 17,271 7.55

Other Non Current assets 21,345 8.42 16,804 7.34

Total assets 253,375 100.00 228,802 100.00

Liabilities and Shareholders' Equity

Current liabilities 56,724 22.39 57,387 25.08

Short term borrowings 4,828 1.91 5,157 2.25

Long term debt 2,949 1.16 2,762 1.21

Minority Interest 3,521 1.39 3,133 1.37

Other non-current liabilities 3,955 1.56 3,818 1.67

Shareholders' Funds 181,398 71.59 156,545 68.42

Total Liabilities 253,375 100.00 228,802 100.00

Consolidated US GAAP30-Sep-09 31-Mar-09

US GAAP Balance Sheet

16th Oct 2009 26

US GAAP Income Statement – In USD

16th Oct 2009 27

COR – SG&A Details – In USD

16th Oct 2009 28

US GAAP Balance Sheet in USD

USD Million % USD Million %

Assets

Cash and Cash equivalents 330 6.27 292 6.49

Accounts Receivable 1,257 23.87 1,213 26.90

Unbilled Revenues 310 5.89 292 6.47

Other Current assets 806 15.29 628 13.92

Property & Equipment 803 15.24 739 16.39

Intangible assets and Goodwill 710 13.47 674 14.94

Investments 608 11.55 340 7.55

Other Non Current assets 444 8.42 331 7.34

Total assets 5,268 100.00 4,509 100.00

Liabilities and Shareholders' Equity

Current liabilities 1,180 22.39 1,131 25.08

Short term borrowings 100 1.90 102 2.26

Long term debt 61 1.16 54 1.21

Minority Interest 73 1.39 62 1.36

Other non-current liabilities 82 1.56 75 1.67

Shareholders' Funds 3,772 71.60 3,085 68.42

Total Liabilities 5,268 100.00 4,509 100.00

Consolidated US GAAP30-Sep-09 31-Mar-09

16th Oct 2009 29

Thank You