TCS'' first-quarter net profit vaults 37 per cent to Rs1,203 crore

17 July 2007

Mumbai: India ''s largest software company Tata Consultancy Services reported a 36 per cent jump in net profit year-on-year at Rs1,203 crore in the first quarter (April-June) 2007.

TCS'' revenues had grown 25.2 per cent at Rs5,203 crore even as the company added six $100 million clients in the April-June quarter. In dollar terms, TCS revenues grew by 8 per cent during Q1.

"Despite factoring in wage hikes and an appreciating rupee, we have maintained profitability by great execution, demand creation and strong financial management," S Ramadorai, CEO and MD of Tata Consultancy Services, said in a statement.

TCS added 54 new clients in the first quarter while it hired 5,512 employees. Attrition was almost unchanged at 11.5 per cent against 11.3 per cent a quarter ago. Business from the existing clients increased to 99.2 per cent against 94.9 per cent of the earlier quarter.

TCS continued to drive strong focus on countering the impact of the appreciating rupee against the US dollar and other major currencies. At the end of Q1, TCS had about $2.5 billion outstanding in hedges.

TCS'' revenue growth has been driven by volume increases with an upward pricing bias, with banking, financial services, telecom and life sciences verticals performing strongly, the statement said.