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TCS Q2 net up 51.8 per centnews
Our Corporate Bureau
14 October 2004
Mumbai: Tata Consultancy Services Ltd (TCS) has reported a year-on-year increase of 51.8 per cent in net profit (excluding exceptional items) and a 43.5 per cent increase in consolidated revenues for the quarter ended September 30, 2004, under US GAAP.

Taking into consideration the exceptional items, consisting mainly of a one-time charge of Rs186.56 crore on the employee stock option scheme, the growth in the Q2 net profit is only marginal.

The company''s annual comparative growth figures for its first quarterly results since its initial public offer were provided under US GAAP.

The results under Indian GAAP would not be comparable with the previous comparaitive period since TCS was then a division of Tata Sons, say officials.

"High productivity, controlling of costs and high market penetration," have been responsible for the growth of the company''s business during the quarter, said S. Ramadorai, managing director and CEO of TCS, at a press conference here yesterday.

The half-year revenues for the fiscal stood at Rs4,630 crore, crossing the $1billion-figure, a landmark for the company, which made its initial public offer in August, said officials. Net profit for the quarter ended September 30, 2004, rose to Rs576 crore, (excluding exceptional items) up from Rs379 crore reported for the corresponding year-ago quarter.

Net profit grew 14.1 per cent over the immediate previous quarter. Revenues under US GAAP rose to Rs2,430 crore, up from Rs1,693 crore during the previous corresponding quarter.

The gross margin stood at 45 per cent, operating margin at 27.47 per cent, and net margin at 23.71 per cent. "Our margins show an exceptional performance by any benchmark," said Ramadorai.

Under Indian GAAP, the company reported a net profit of Rs342 crore for the quarter, excluding exceptional items, and revenues of Rs2,044 crore.

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TCS Q2 net up 51.8 per cent