TCS Q3 Revenues at $1,483 million

Highlights for Quarter Ended December 31, 2008

 Revenues at $1,483 million flat Y-o-Y;  (5.8%) Q-o-Q

 Net Income at $276 million (18.0%) Y-o-Y; (3.5%) Q-0-Q
 EPS at $ 0.28 in Q3
 41 new clients added in Q3
 11,773 employees joined the company in Q3
 Attrition rate declined to 11.9 LTM
 Quarterly dividend of Rs 3 per share – 18th Consecutive Quarterly Dividend

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Mumbai, India, January 15, 2009: Tata Consultancy Services (BSE: TCS.BO, NSE: TCS.NS)
reported its consolidated financial results according to US GAAP for the quarter ended
December 31, 2008.

Highlights for Quarter Ended December 31, 2008

 Revenues at $1,483 million flat Y-o-Y;  (5.8%) Q-o-Q

 Net Income at $276 million (18.0%) Y-o-Y; (3.5%) Q-0-Q
 EPS at $ 0.28 in Q3
 41 new clients added in Q3
 11,773 employees joined the company in Q3
 Attrition rate declined to 11.9 LTM
 Quarterly dividend of Rs 3 per share – 18th Consecutive Quarterly Dividend

Commenting on the performance, Chief Executive Officer and Managing Director, S.

Ramadorai said: “In tough market conditions, TCS continues to perform in a stellar fashion,
driving revenue growth through our diversified market presence and boosting our operational
profitability by conserving costs and creating efficiencies.”  He added: “In its 40-year history,
TCS has focused on institution building and value creation for all stakeholders. We have paid
dividends for 18 consecutive quarters. With our disciplined and professional approach to
management, we have always been a role model for corporate governance highlighted by the
company’s transparency, ethics and integrity - values that flow from the Tata Group’s Code of
Conduct.”

S. Mahalingam, Chief Financial Officer, said: “TCS has significant exposure in non-dollar
denominated revenues and the depreciation in GBP, Euro, Australian Dollar and Brazilian Real
has meant that the revenues earned in those currencies translated into a lower amount of dollars.
This has impacted the revenue and profit growth in dollar terms, though in constant currency and
absolute terms, the company’s business continues to grow.” He added: “In the current
environment, it is important to run a tight ship with sustainable cost control measures while
continuing to invest for the future.”
“In a challenging market, TCS remained focused on execution discipline and kept pricing stable
and therefore managed to grow profitably along with margin improvement,” said N.
Chandrasekaran, Chief Operating Officer.  “We have closed some key deals across markets
and sectors, acquired 41 new customers and have a healthy pipeline of deals across our
diversified customer base.”

In terms of markets, North America appears to be stabilizing with TCS adding two new marquee
customers during the quarter. TCS’ strong pan-European presence and category leadership in UK
helped the company significantly grow revenues in a sluggish market. Despite weak economic
outlook, Latin America registered very strong demand, from both local companies and
multinationals seeking GNDM capability.  

The Indian market continued to see low capital spend by both public and private sector clients. 
Going forward government spending is expected to revive demand.

Consumer spending led sectors like Retail and Media & Entertainment exhibited resilience in the
October-December quarter, while ramp-ups in large transformation deals signed in earlier
quarters helped Retail and Life-Sciences verticals show strong growth.

Key Wins:

 A large transformational full services (IT/IS/BPO) outsourcing deal for a leading

specialty retailer of North America.
 A multi year deal from a leading US-based Services company that will leverage GNDM
and Full Services capabilities. 
 Improve efficiency and drive optimization in the application portfolio for a leading US
utility and bring innovation in their business.
 Multi year deal for prime application development and support for leading Canadian
utility.
 Primary vendor for multi-million vendor consolidation initiative at a leading Investment
Bank.
 Provide high quality and reliable case handling services to the clinical development group
of a global pharma major.

“We have added over 30,400 people in the first nine months which is in line with our hiring
plans for the financial year. Our retention rates for both IT services and BPO have shown
significant improvement in the current quarter. We continue to focus on improving utilization
rates and employee productivity,” said Ajoy Mukherjee, Vice President & Head, Global
Human Resources.

During Q3, there was a gross addition of 11,773 employees (net 8,692 employees) of which
8,704 were trainees and 1,696 were lateral recruits in India and 1,373 employees were added in
overseas subsidiaries and branches. The total employee base was 130,343 professionals and 52
per cent of the workforce had more than three years experience.
The utilisation rate (excluding trainees) was 79.9 per cent and the attrition rate in Q3 dropped to
11.9 per cent overall with 11.2 per cent attrition rate in the IT services business and 20.5 per cent
attrition rate in BPO. Foreign nationals formed 9.1 per cent of the total employee base and 30 per
cent were women.

About Tata Consultancy Services Ltd (TCS)

Tata Consultancy Services is an IT services, business solutions and outsourcing organization that
delivers real results to global businesses, ensuring a level of certainty no other firm can match.
TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through
its unique Global Network Delivery Model, recognized as the benchmark of excellence in
software development.

A part of the Tata Group, India’s largest industrial conglomerate, TCS has over 130,300 of the
world's best trained IT consultants in 42 countries. The Company generated consolidated
revenues of US $5.7 billion for fiscal year ended 31 March, 2008 and is listed on the National
Stock Exchange and Bombay Stock Exchange in India.