16 Jan 2008

Results for Quarter III FY 2007-08

216 Jan 2008

Certain statements in this release concerning our future growth prospects are forward- looking statements,

which involve a number of risks, and uncertainties that could cause actual results to differ materially from

those in such forward-looking statements. The risks and uncertainties relating to these statements include,

but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth,

intense competition in IT services including those factors which may affect our cost advantage, wage

increases, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed- price,

fixed-time frame contracts, client concentration, restrictions on immigration, our ability to manage our

international operations, reduced demand for technology in our key focus areas, disruptions in

telecommunication networks, our ability to successfully complete and integrate potential acquisitions, liability

for damages on our service contracts, the success of the companies in which TCS has made strategic

investments, withdrawal of governmental fiscal incentives, political instability, legal restrictions on raising

capital or acquiring companies outside India, and unauthorized use of our intellectual property and general

economic conditions affecting our industry. TCS may, from time to time, make additional written and oral

forward looking statements, including our reports to shareholders. The Company does not undertake to

update any forward-looking statement that may be made from time to time by or on behalf of the company.

Disclaimer

16 Jan 2008

Financial Performance

416 Jan 2008

Indian GAAP Growth Summary

Total Income 5,923 5,640 4,873

% Growth Q-o-Q 5.02%

% Growth Y-o-Y 21.54%

PBIDT (excl Other Income) 1,568 1,479 1,389

% Growth Q-o-Q 6.06%

% Growth Y-o-Y 12.88%

Profit Before Tax 1,535 1,458 1,312

% Growth Q-o-Q 5.33%

% Growth Y-o-Y 17.01%

Profit After Tax 1,327 1,252 1,116

% Growth Q-o-Q 6.00%

% Growth Y-o-Y 18.87%

Consolidated Indian GAAP (Rs. Crore) Q3 FY08 Q2 FY08 Q3 FY07

516 Jan 2008

US GAAP Revenue Growth

Revenue from International Business 53,673 51,765 44,777

% Growth Q-o-Q 3.69%

% Growth Y-o-Y 19.87%

Revenue from Indian Business 5,568 4,633 3,828

% Growth Q-o-Q 20.17%

% Growth Y-o-Y 45.44%

Total Revenue 59,241 56,398 48,605

% Growth Q-o-Q 5.04%

% Growth Y-o-Y 21.88%

Consolidated US GAAP (Rs Millions) Q3 FY08 Q2 FY08 Q3 FY07

616 Jan 2008

US GAAP Growth Summary

Gross Margin 26,878 25,293 21,564

% Growth Q-o-Q 6.27%

% Growth Y-o-Y 24.65%

EBIDTA 15,788 14,821 13,752

% Growth Q-o-Q 6.53%

% Growth Y-o-Y 14.80%

Operating Income 14,313 13,439 12,673

% Growth Q-o-Q 6.50%

% Growth Y-o-Y 12.95%

Net Income 13,308 12,469 11,047

% Growth Q-o-Q 6.72%

% Growth Y-o-Y 20.47%

Consolidated US GAAP (Rs Millions) Q2 FY08 Q3 FY07 Q3 FY08

16 Jan 2008

Operational Performance

816 Jan 2008

49.5%

4.7%

19.4%

9.8%

9.4%5.5% 1.7%

North America

Ibero America

UK

Continental Europe

India

Asia Pacific

MEA

Americas

North America 49.5 52.2

Ibero America 4.7 4.2

Europe

UK 19.4 19.9

Continental Europe 9.8 8.4

India 9.4 8.2

Asia Pacific 5.5 5.2

MEA 1.7 1.9

Total 100.0 100.0

Q3 FY08 Q2 FY08Geography (%)

Growth by Market

• Europe and emerging markets

strongly contribute to maintain

growth momentum.

• US and UK consolidate in a

traditionally slow quarter. Good

pipeline of large outsourcing deals

from broader portfolio of customers.

• Strong demand in continental

Europe across wide cross section

of industries.

• Stable demand environment in

APAC and Ibero America.

• Dominant share in large system

integration and implementation

projects in India drive strong

revenue growth.

916 Jan 2008

44.0%

17.5%12.5%

7.2%

5.3%4.7%

3.1% 5.7%

BFSI

Telecom

Manufacturing

Retail & Distribution

Life Sciences & Healthcare

Transportation

Energy & Utilities

Others

Growth by Domain

BFSI 44.0 43.3

Telecom 17.5 17.8

Manufacturing 12.5 12.7

Retail & Distribution 7.2 7.6

Life Sciences & Healthcare 5.3 5.6

Transportation 4.7 4.4

Energy & Utilities 3.1 2.5

Others 5.7 6.1

Total 100.0 100.0

Q3 FY08 Q2 FY08IP Revenue (%)

• BFSI Segment achieved an

excellent growth against the

backdrop of the sub-prime

crisis

• All non-BFSI segments have

shown good growth and there

is a healthy pipeline of large

deals across these industries

• Infrastructure Services, BPO

and transformation programs

are driving growth in Retail

and Telecom segments

1016 Jan 2008

47.7%

9.6%13.2%

4.0%

5.3%6.7%

3.7%3.3% 6.5%

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 (%) Q3 FY08 Q2 FY08

IT Solutions and Services

Application Development & Maint. 47.7 48.6

Business Intelligence 9.6 9.7

Enterprise Solutions 13.2 12.8

Assurance Services 4.0 3.8

Engineering & Industrial Services 5.3 5.3

Infrastructure Services 6.7 6.9

Global Consulting 3.7 3.3

Asset Leverage Solutions 3.3 3.4

Business Process Outsourcing 6.5 6.2

Total 100.0 100.0

• TCS witnessed growth across all its

service lines.

• TCS Full Services strategy

consolidates with Non ADM

services continuing to out perform.

• Large ADM and IT outsourcing

gaining strength in established and

newer geographies like APAC,

MEA, and Ibero-America.

• Size and scale of infrastructure

deals are increasing across all

major markets

• GCP and BPO continue to grow

strongly among established clients.

1116 Jan 2008

Operational Parameters

Onsite 54.3 53.3

GDC/RDC 4.3 3.7

Offshore 41.4 43.0

Time & Material 54.6 56.3

Fixed Price & Time 45.4 43.7

* Excluding Domestic Clients

Contract Type

Revenue % Q3 FY08 Q2 FY08

Delivery Location*

1216 Jan 2008

Client Parameters

% Revenue from Large Clients*

Top 1 6.9 7.0

Top 5 19.1 19.1

Top 10 29.7 27.6

Client Portfolio by Revenue*

> USD 1 Million 347 334

> USD 5 Million 138 139

> USD 10 Million 97 92

> USD 20 Million 53 51

> USD 50 Million 19 18

> USD 100 Million 7 6

* Last Twelve Months

Q3 FY08 Q2 FY08

1316 Jan 2008

Client Acquisition and Expansion

Particulars Q3 FY08 Q2 FY08

Active Clients 857 814

New Clients 54 51

Revenue % from Repeat Business 94.9 97.8

Revenue % from New Business * 5.1 2.2

* Reset at the beginning of Financial Year

1416 Jan 2008

Representative Wins

Client Services Contract Value

The Nielsen Co. Full Services: Consulting, IT, IS, BPO $1.2 billion

Social Security Institute of Mexico IT Services $200 million

Global Insurance Co. Business Transformation: IT, BPO $100+ million

Automotive OEM Strategic Partner: IT Services $120 million

Manufacturing Supplier Strategic Partner: Engineering Program $50+ million

HealthCare Products Co. Global IT Transformation $50+ million

European Steel Co. Strategic Partner: IT Services $65+ million

Indian Non-Life Insurance Co. Systems Integration, IT Services $40+ million

Australian Bank Strategic Partner: IT Services $30 million

1516 Jan 2008

Representative Wins

Client Services

Leader in Building Material Services End-to-end IS

European Manufacturing Co.Content Management Systems for its global

clientele using GNDM

Middle Eastern AirlineSystems Integration for deployment of IT master

plan, IS transformation

MNC Insurance Co's Indian OperationsEnd-to-end services, TCS Bancs Insurance

Platform implementation

Nordics Telecom ProviderCustomer Service Center Modernization,

Implement Billing & CRM Systems

16 Jan 2008

Human Resources

1716 Jan 2008

Largest IT Employer in India: 108,229 employees

Total Employees: 108,229

TCS : 104,399

Indian subsidiaries: 3,830

Overseas Subsidiaries and Branches : 8,782

Global Delivery Centers : 3,992

Q3-07 Q4-07 Q1-08 Q2-08 Q3-08

79,755

85,582

91,094

100,362104,3993,745 3,837

3,8083,985

3,830

1816 Jan 2008

Lowest Attrition in the Industry.

• Attrition: 12.2%, including BPO

• IT Services: 11.5% (LTM), BPO: 20.0 % (LTM)

• Additions: 3,378 Trainees & 3,661 Laterals in India; 922 in Overseas Subs & Branches

• Utilization Rate was 77.7% (excluding trainees), 72.6% (including trainees)

Q3 07 Q4 07 Q1 08 Q2 08 Q3 08

7,8358,613 8,706

12,523

7,522

5,562 5,827 5,512

9,268

4,037

Gross Additions

Net Additions

*439 employees were a part of non core business that has been divested. This has

been reduced from the Gross additions for Q3’08

1916 Jan 2008

• 28 % of our workforce are women

• 49% of our associates have more than 3 years of work experience.

• Associates from 62 Foreign Nationalities

Diverse Workforce

2016 Jan 2008

22,295 offers made for FY’09

FY06 FY07 FY08 (YTD)

66.7%

91.2% 95.5%

33.3%

8.8%4.5%

Day 1 Others

95.5% Day 1 slots achieved

•100% Day 1 in Ahd, Hyd, Kolkata & Pune

•265 Institutes visited

B.Sc hiring for IGNITE & IS

•1,410 science graduates have joined

Total Offers made: 22,295

16 Jan 2008

Annexure

2216 Jan 2008

Indian GAAP Income Statement – Consolidated

INCOME

a) IT & Consultancy Services 5,560.24 5,386.30 4,641.36 93.88 95.51 95.24

b) Manufacturing, Sale of equipment and Licences 362.73 253.43 232.08 6.12 4.49 4.76

Total Income 5,922.97 5,639.73 4,873.44 100.00 100.00 100.00

EXPENDITURE

a ) Salaries & Wages 2,000.19 1,931.19 2,089.34 33.77 34.24 42.87

b ) Overseas business expenditure 1,061.26 1,006.93 335.60 17.92 17.85 6.89

c) Other operating expenses 1,293.43 1,223.05 1,059.35 21.84 21.69 21.74

Total Expenditure 4,354.88 4,161.17 3,484.29 73.53 73.78 71.50

Profit Before Interest, Depreciation, Taxes

& Other Income 1,568.09 1,478.56 1,389.15 26.47 26.22 28.50

Interest 7.57 8.56 2.59 0.13 0.15 0.05

Depreciation 144.20 134.53 111.46 2.43 2.39 2.29

Profit Before Taxes & Other Income 1,416.32 1,335.47 1,275.10 23.91 23.68 26.16

Other Income 119.01 122.22 37.09 2.01 2.17 0.76

Profit Before Taxes 1,535.33 1,457.69 1,312.19 25.92 25.85 26.92

Provision For Taxes 200.05 204.45 182.13 3.38 3.63 3.74

Profit After Taxes From Operations 1,335.28 1,253.24 1,130.06 22.54 22.22 23.18

Minority Interest 8.89 2.05 14.36 0.15 0.04 0.29

Share of profit in respect of investments in Associates (0.28) (0.41) (0.40) - (0.01) (0.01)

Net Profit 1,326.67 1,251.60 1,116.10 22.39 22.19 22.90

% of Total Income

Q3 FY08 Q2 FY08 Q3 FY07 Q3 FY08 Q2 FY08 Q3 FY07Consolidated Indian GAAP

Rs. Crore

2316 Jan 2008

Indian GAAP Balance Sheet - Consolidated

31-Dec-07 31-Mar-07 31-Dec-07 31-Mar-07

Source of Funds

Shareholders' Funds 11,665.46 8,850.10 93.89 91.80

Minority Interest 200.12 211.80 1.61 2.20

Loan Funds 444.80 506.75 3.58 5.26

Deferred Tax Liability 114.13 71.70 0.92 0.74

Total Liabilities 12,424.51 9,640.35 100.00 100.00

Application of Funds

Fixed Assets (net) 3,266.48 2,911.59 26.29 30.20

Goodwill 1,197.14 1,068.34 9.64 11.08

Deferred Tax Asset 128.56 72.44 1.03 0.75

Investments 2,262.81 1,256.87 18.21 13.04

Cash and Bank Balance 1,232.53 1,396.45 9.92 14.49

Current Assets, Loans and Advances 8,404.98 6,430.11 67.65 66.70

Current Liabilities and Provisions (4,067.99) (3,495.45) (32.74) (36.26)

Net Current Assets 5,569.52 4,331.11 44.83 44.93

Total Assets 12,424.51 9,640.35 100.00 100.00

Consolidated Indian GAAPRs Crore %

2416 Jan 2008

USD Millions

Revenue 1,502.99 59,240.53 56,398.40 48,604.76 100.00 100.00 100.00

Cost of revenue 821.07 32,362.33 31,105.63 27,041.02 54.63 55.15 55.63

Gross margin 681.92 26,878.20 25,292.77 21,563.74 45.37 44.85 44.37

SG & A expenses 318.79 12,565.05 11,853.54 8,891.16 21.21 21.02 18.29

Operating income 363.13 14,313.15 13,439.23 12,672.58 24.16 23.83 26.08

Other income (expense), net 26.59 1,048.03 1,104.64 299.84 1.77 1.96 0.62

Income before income taxes 389.72 15,361.18 14,543.87 12,972.42 25.93 25.79 26.70

Income taxes 49.39 1,946.84 2,036.57 1,828.01 3.29 3.61 3.76

Equity in net earnings of affiliates 0.07 2.80 4.14 17.14 0.00 0.01 0.04

Income after income taxes 340.40 13,417.14 12,511.44 11,161.55 22.64 22.19 22.98

Minority Interest 2.78 109.57 41.99 114.74 0.18 0.07 0.24

Net Income 337.62 13,307.57 12,469.45 11,046.81 22.46 22.12 22.74

USD Rupees Rupees Rupees

Earnings Per Share 0.35 13.60 12.74 11.29

Q3 FY07

Rs Millions

Q3 FY08 Q3 FY08 Q2 FY08 Q3 FY07Consolidated US GAAP

Q3 FY08

% of Revenue

Q2 FY08

US GAAP Income Statement

INR numbers of Q3 FY08 are converted to USD on convenience translation basis @ Rupees 39.415 per USD

2516 Jan 2008

Q3 FY07

Employee Cost 25,039.53 24,695.49 21,681.85 42.27 43.79 44.61

Equipment & Software 2,867.01 2,030.87 1,521.08 4.84 3.60 3.13

Depreciation 978.53 953.32 747.43 1.65 1.69 1.54

Travel 874.14 766.07 645.04 1.48 1.36 1.33

Communication 528.95 429.53 332.44 0.89 0.76 0.68

Rent 651.32 644.76 467.31 1.10 1.14 0.96

Other Costs 1,422.85 1,585.59 1,645.87 2.40 2.81 3.38

Cost of Revenue 32,362.33 31,105.63 27,041.02 54.63 55.15 55.63

Employee Cost 7,016.98 6,610.44 4,858.87 11.84 11.72 10.00

Bad Debts & Prov for Doubtful Debts 64.28 215.44 (65.20) 0.11 0.38 (0.13)

Depreciation 496.74 428.00 332.48 0.84 0.76 0.68

Rent 584.49 496.32 485.50 0.99 0.88 1.00

Travel 722.82 689.50 652.79 1.22 1.22 1.34

Communication 332.25 290.69 273.59 0.56 0.52 0.56

Recruitment & Training 477.46 448.83 370.38 0.81 0.80 0.76

Professional Fees 451.75 348.11 377.24 0.76 0.62 0.78

Other Costs 2,242.55 2,174.44 1,500.94 3.79 3.86 3.09

Research and development 175.73 151.77 104.57 0.29 0.26 0.21

S G & A expenses 12,565.05 11,853.54 8,891.16 21.21 21.02 18.29

Q3 FY07

Q3 FY08

S G & A Rs. Millions % of Revenue

Q3 FY08 Q2 FY08 Q3 FY08

Q3 FY08 Q2 FY08 Q3 FY07

Q2 FY08 Q3 FY07

% of Revenue

Q2 FY08 COR

Rs. Millions

COR – SG&A Details

2616 Jan 2008

Rs Millions % Rs Millions %

Assets

Cash and Cash equivalents 10,380.26 6.32 12,291.40 9.41

Accounts Receivable 50,101.57 30.51 43,090.44 32.98

Unbilled Revenues 12,245.33 7.46 7,834.80 6.00

Other Current assets 15,933.16 9.70 11,636.23 8.90

Property & Equipment 27,152.48 16.53 22,912.39 17.54

Intangible assets and Goodwill 14,245.96 8.67 13,977.73 10.70

Investments 23,019.19 14.02 12,710.82 9.73

Other Non Current assets 11,146.88 6.79 6,194.16 4.74

Total assets 164,224.83 100.00 130,647.97 100.00

Liabilities and Shareholders' Equity

Current liabilities 39,301.89 23.93 31,357.28 24.00

Short term borrowings 350.94 0.22 603.11 0.46

Long term debt 5,623.18 3.42 6,022.46 4.61

Minority Interest 2,158.12 1.31 2,120.82 1.62

Other non-current liabilities 801.16 0.49 883.52 0.68

Shareholders' Funds 115,989.54 70.63 89,660.78 68.63

Total Liabilities 164,224.83 100.00 130,647.97 100.00

31-Dec-07 31-Mar-07Consolidated US GAAP

US GAAP Balance Sheet

2716 Jan 2008

Thank You!