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TCS Q2 net profits jump over 50 pc

Press Trust Of India
Oct 17, 2006 at 09:03am IST

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Mumbai: India's largest software exporter Tata Consultancy Services Ltd (TCS) posted an over 50 per cent jump in net profit at Rs 931.32 crore for the quarter ended September 30, as it added more clients and saw global orders increasing.

The company's total income increased to Rs 3,683.87 crore in the second quarter, as against Rs 2,501.30 crore in the year-ago period.

Its net profit stood at Rs 620.32 crore in the second quarter last year.

INDIA'S PRIDE: S Ramadorai, managing director of Tata consultancy Services appreciated the giant leap in its Q2 results.

However, the figures are not comparable due to amalgamation of various group companies. On consolidated basis, the company's group net profit crossed Rs 10,000 crore level.

TCS expects annual revenues to cross $4 billion (Rs 18,000 crore) in FY'07, its CEO and Managing Director S Ramadorai said.

TCS' board of directors also declared a second interim dividend of Rs 3 on equity share of Re 1 each of the company.

"TCS had a dynamic quarter with a continuous focus on profitable growth, driven by strong international demand, an increasing number of large customers as well as a healthy addition of 58 new accounts. There is tremendous scope to continue to increase our share of wallet with our top 50 customers using our full-services play," Ramadorai said.

The company's CFO S Mahalingam said that TCS improved its margins by over 300 basis points in a strong demand environment.

The margins were also boosted by the transition of large contracts announced earlier into offshore mode, he added.

The group's net profit stood at Rs 1018.68 crore in the quarter ended September 30, whereas the same was at Rs 693.71 crore for the same quarter last year.

The total income of the group was at Rs 4513.92 crore for the quarter ended September 30, where as the same was at Rs 2966.05 crore a year ago.

The company added 58 new customers and increased its customers in the one-million-dollar band from 258 to 274. The company's headcount increased by a gross of 8,919 employees (net addition of 6,663) at the end of the quarter, taking its total employee strength to 78,028.

The comparative figures do not include the numbers from the erstwhile Tata Infotech Ltd, Airline Financial Support Services (India) Ltd, TCS Business Transformation Solutions Ltd and Aviation Software Development Consultancy India Ltd, which were amalgamated with itself retrospectively with effect from April 1, 2005.

The schemes of amalgamations of these companies became effective on February 1.

Consequently, the figures are not comparable with the figures for the quarter and six-month period ended September 30.

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