Consolidated results for the quarter ended December 31, 2009. Revenues were $ 1,232 million for the quarter ended December 31, 2009; QoQ growth was 6.8%; YoY growth was 5.2%.
• Net income after tax was $ 334 million for the quarter ended December 31, 2009; QoQ growth was 5.4%; YoY growth was 0.6%
• Earnings per American Depositary Share (ADS) was 0.59 for the quarter ended December 31, 2009; QoQ growth was 5.4%; YoY growth of 1.7%
"Global economic recovery seems to be led by the U.S. and the Financial Services," said S. Gopalakrishnan, CEO and Managing Director. "Even though IT budgets are expected to be flat in 2010, offshore outsourcing is expected to benefit from this recovery."
Business outlook
The company's outlook (consolidated) for the quarter ending March 31, 2010 and for the fiscal year ending March 31, 2010, under International Financial Reporting Standards (IFRS), is as follows:
Outlook under IFRS#
Quarter ending March 31, 2010
• Consolidated revenues are expected to be in the range of $ 1,240 million and $ 1,250 million; YoY growth of 10.6% to 11.5%
• Consolidated earnings per American Depositary Share is expected to be $ 0.56; YoY growth nil
Fiscal year ending March 31, 2010
• Consolidated revenues are expected to be in the range of $ 4.75 billion and $ 4.76 billion; YoY growth of 1.8% to 2.0%
• Consolidated earnings per American Depositary Share is expected to be $ 2.26; YoY growth of 0.4%
# Exchange rates considered for quarter ending March 31, 2010 for major global currencies: AUD / USD - 0.90;
GBP / USD - 1.61; Euro / USD - 1.44
Expansion of services and significant projects
As in the last few quarters, our focus continues to be on building strengths. Intellectual Property (IP)-based solutions, New Engagement Models (NEMs) that offer flexible pricing and operational control to clients, and the Global Delivery Model will play a significant role in defining our successes.
During the third quarter, we launched FlyppTM, an application platform that enables mobile service providers to enhance customer experience with a host of ready-to-use experiential applications across several devices. A health insurance major bought our iTransform product suite that assists clients in complying with the U.S. Federal Government's mandates on HIPAA 5010 and ICD 10 standards, efficiently and cost effectively. A Consumer Packaged Goods (CPG) major bought the 'Procurement' module of our 'Supply Chain Visibility' product suite to cut sourcing cycle times and leakages in procurement spend through better monitoring, compliance and governance mechanisms. One of the largest retailing companies selected us as a partner in its Future Store Initiative to advance cutting-edge technologies and innovative shopping concepts. We were chosen for our ShoppingTrip360 solution, an innovative managed service that offers retailers and CPG companies insights into real-time shopper and shelf activity. A grocery retailer in the U.K. partnered with us to develop a new multi-channel web platform to bring about an integrated, wholesome online experience.
Clients across industries continue to entrust us with transformational responsibilities. A leading provider of security testing software solutions engaged us to engineer leading-edge penetrative testing products. We are building a Patient Appointment Scheduling System for a provider of medical laboratory tests and services. The system will allow a patient to schedule an appointment at any of the company's 1,000-plus patient service centers. We are helping a leading provider of virtualization, networking and Software-as-a-Service (SaaS) technologies to design its architecture for Master Data Management. A telecom service provider sought our help to build and manage its online portals and enhance its online presence. We are working with a communications major in the field of wireless 4G development. A specialty retailer engaged us to develop a SaaS solution.
A manufacturer of language translation software engaged us as a Quality Assurance (QA) partner to design, automate and test its next major release of desktop products suite. A high tech major engaged us to set up a Center of Excellence (CoE) with focus on multiple QA services for several critical applications. An auto major engaged us to implement next-generation Enterprise Resource Planning (ERP) software in its distribution business. A leading turbo machinery manufacturer partnered with us to expand its business through manufacturing engineering, manufacturing process standardization, setting up of manufacturing facilities for turbo machinery remanufacturing.
"The rupee appreciated by 3.7% during the quarter," said V. Balakrishnan, Chief Financial Officer. "We maintained our margins while our cash and cash equivalents reached $ 3.1 billion."
Board of Directors
The Board has appointed Prof. Marti G. Subrahmanyam as the Lead Independent Director effective January 12, 2010. Prof. Subrahmanyam will be taking over the role from Mr. Deepak M. Satwalekar. Mr. Satwalekar will continue to serve as an Independent Director and Chairman of the Audit Committee. He is the first Lead Independent Director in India and was appointed in May 2003.
"As the Lead Independent Director, Deepak played a vital role in enhancing our corporate governance function, already a torchbearer in the industry," said N.R. Narayana Murthy, Chairman of the Board and Chief Mentor. "His dedication, insight and urge for excellence have contributed immensely in taking our Board functions to the next level. We will cherish his contributions which have been invaluable."
He added, "I am delighted to welcome Prof. Marti G. Subrahmanyam as the Lead Independent Director. He's a very worthy successor to Deepak and we eagerly look forward to continuing our success story with him."