1.Confidential

Quarterly Results AnnouncementFY 2004-05 Quarter II

13th October 2004

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Disclaimer

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.

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Q2 - Highlights

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Superior financial results

§ Revenues for the quarter at Rs. 24,307 million grew 43.58%over the corresponding quarter during the previous year and 13.93% over the previous quarter

§ The Net Income(excluding exceptional items) at Rs. 5,764 million grew 51.81% over the corresponding quarter during the previous year and 14.10% over the previous quarter

§ The company’s gross, operating and net margins stood at 45.00%, 27.47% and 23.71% in Q2.

§ Fully diluted Earnings Per Share (Face Value of Re. 1) for the quarter on an equity base of Rs. 480.1 million at Rs. 11.56(excluding exceptional items) and Rs. 7.34 (including exceptional items)

All financial numbers are as per consolidated US GAAP

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Outstanding business performance§ The company continues to see robust growth in all geographies.

We added 50+ new customers during this quarter.

§ All our GDCs – specifically those at Uruguay, Brasil, Hungary and China are gaining momentum. We are serving 35 customers in these GDCs with each of them serving at least 5 customers.

§ TCS became the first company in the world to be assessed at CMMi, PCMM Level 5 at enterprise level under its iQMS initiative.

§ TCS received the coveted “JRD QV” award under the TataBusiness Excellence Model.

§ TCS was ranked as the #1 Employer of Choice by DQ for 2003-04

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Q2 - Operations Update

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Q2 Revenues

24,307

16,929

43.58%

24,307

21,335

13.93%

Q2FY04

Q2FY05

Q1FY05

Q2FY05

Y-on-Y Q-on-Q

All financial numbers are are in Rs. Million and as per consolidated US GAAP

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Q2 Profit Before Tax

6,678

4,360

53.17%

6,678

5,901

13.17%

Q2FY04

Q2FY05

Q1FY05

Q2FY05

Y-on-Y Q-on-Q

All financial numbers are are in Rs. Million and as per consolidated US GAAP

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Q2 Profit After Tax(before exceptional items)

5,764

3,796

51.81%

5,764

5,051

14.10%

Q2FY04

Q2FY05

Q1FY05

Q2FY05

Y-on-Y Q-on-Q

All financial numbers are are in Rs. Million and as per consolidated US GAAP

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Robust growth across geographies

• Healthy mix of revenues across geographies, with Americas contributing 59.7% and Europe 22.8%.

• Each of the geographies achieve double digit growthrate over the previous quarter (Q1).

• New customers added in every geography and in each of the GDCs in Uruguay, Brazil, Hungary and China during the quarter.

59.74%(Americas)

22.79%(Europe)

11.72%(India)

5.74%(Others)

Americas Europe India Others

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Focus on domain competency leading to greater customer penetration

• The company is seeing growth in all Industry segments – Holistic growth

• New customers have been added in all Industry segments in every geography

• End-to-End engagements in different vertical segments:⌦ Supply-chain, Warehouse management⌦ Payments, Custody, Asset Management,

Securities Trading and Core banking⌦ Order Management, Billing and Application

Integration⌦ Platform Re-engineering

37.30%(BFSI)

19.60%(Manufacturing)

17.30%(Telecom)

4.10%(Life Sciences& Healthcare)

6.80%(Retail

& Distribution)

4.10%(Transportation)

3.10%Energy

& Utilities

7.70%(Others)

BFSI Manufacturing

Telecom Life Sciences & HealthcareRetail & Distribution Transportation

Energy & Utilities Others

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Broad portfolio of services delivering higher value to customers

• Revenues from Package Implementation solutions and Asset leveraged solutions are continuing to grow.

• The company acquired three(3) new clients for Remote Infrastructure Management services.

• The BPO services have gained momentum and we added six(6) new clients.

• Two(2) major European banks chose “Quartz” as their banking platform.

• “Process Consulting” under the Value Engines initiative has been welcomed by our clients and we offered this service to 17 clients including three (3) new clients.

73.30%(ADM)

22.50%(Enterprise Solutions)

2.60%(Asset Leveraged

Solutions) 1.70%(Others)

ADMEnterprise SolutionsAsset Leveraged SolutionsOthers

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Operational Excellence

Delivery Location Q1 Q2FY 2004-05

Onsite

Offshore

63.10% 62.50%

36.90% 37.50%

Pricing Model Q1 Q2FY 2004-05

Time & Material

Fixed price, fixed time

46.80% 49.10%

53.20% 50.90%

• The project execution has moved towards offshore marginally.

• As the company completes transition in large contracts, the shift towards offshore is expected to continue, albeit marginally.

• There is an increase in the Time & Material contracts during this quarter.

• The Fixed price, fixed time projects are expected stay in the 50% range in the coming quarters.

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Client Concentration – Well Balanced

Clients Q1 FY 2005 Q2 FY 2005Top 1 5.30% 5.10%Top 5 22.20% 21.20%Top 10 35.20% 33.60%

US $ 1 mm Clients 166 177US $ 5 mm Clients 59 65US $ 10 mm Clients 31 34US $ 20 mm Clients 18 19US $ 50 mm Clients 4 5

The revenues from GE contributed to 15.9% of the overall revenues – from 17.1% in Q1

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Healthy mix of repeat and new business

Active Clients 444 490New Clients 69 52

Revenue from Repeat Business 98.10% 96.10%

Revenue from New Business 1.90% 3.90%

Q1 Q2FY 2004-05

• New clients have been added in all Geographies – North America, Latin America, Europe and Asia.

• The revenue contribution from the top 1, 5 and 10 clients as well as the repeat business from existing customers are in the right direction and very healthy.

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Key Achievements§ Major deployment of CRM solution was completed for a large Retailer in

North America.

§ “Quartz”, the company’s flagship banking product went “live” successfully for a bank in Latin America.

§ An End-to-End solution comprising budgeting, planning, procurement and logistics for a major CPG company using state-of-the-art component technology went “live” in Europe.

§ Successfully delivered an End-to-End solution covering Customer and Order Management for a large, global “telco” major to support 3G in Australia.

§ Integration of our BPO delivery entities is complete with a clear vertical based offerings to the market.

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HR Update

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Employee Growth in TCS (Q2 FY 05)

25514 2674528797

3012132722

36696

0

5000

10000

15000

20000

25000

30000

35000

40000

FY 04 Q1 FY 04 Q2 FY 04 Q3 FY 04 Q4 FY 05 Q1 FY 05 Q2

No

of e

mp

loye

es

3974

Does not include employees of Indian subsidiary companies

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Distribution of Employees (Q2 FY 05)

Total Employees 40,948

2985(CMC)

1267(Others)

36696(TCS)

TCSCMCOthers

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Human Resources (Q2 FY 05)

§ The total number of associates in TCS as of end Q2 FY 05 is 40,948 including all subsidiaries.

§ During the quarter we have added 2542 trainees and 1955 experienced professionals resulting in a gross addition of 4497 associates. 795 associates have left us resulting in a net addition of 3702 associates. In addition our overseas subsidiaries and branches have added 272 professionals. This makes the net addition of 3974 professionals. Our attrition rate for the Last Twelve Months (LTM) is 7.9%.

§ Our utilization including trainees is 77.42% and excluding trainees is 83.02%.

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Human Resources (Q2 FY 05)

§ For the second quarter we have distributed 999 million rupees asVariable compensation. For Q1 we had distributed 722 million rupees. The total variable compensation distributed for the first half of the year is 1721 million rupees. (Based on our EVA model of compensation)

§ As of April this year our salaries increased by 15% on an average across the company.

§ During this quarter we rewarded 1014 associates of TCS, through the ESPS scheme, in recognition of their contribution to the growth of the company.

§ About 900 million rupees was distributed to 6563 associates of the company in recognition of their contribution to the growth of the company.

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Human Resources (Q2 FY 05)

§ We continue to invest in our competency building programs through initial learning, continuous learning and management development programs. During the quarter 2476 associates completed their initial training program, 3275 associates were trained in hot skills and the total participant days in Continuous Learning Program during the quarter is 45,328 days.

§ We have set up a training center in Buffalo NY to train our associates in the US. We are in the process of setting up similar capabilities in Montevideo, Uruguay.

§ We continue to focus on our associate engagement events involving the associates and their extended families.

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TCS was rated the Best Employer amongst IT companies in India by the DataQuest survey for the FY 04.