TCS takes the lead with 45 per cent Q3 net growth

Mumbai: If the Infosys results announced last week was a disappointment to a section of the market only because the company could not beat market expectations as it usually does, the results from TCS should make the market more than happy.

The company has delivered very strong results for the third quarter, which has exceeded market expectations, despite the rupee appreciation.

TCS, the largest software developer in Asia, has also become the first Indian IT services company to clock revenues in excess of $1 billion during a quarter. The company concluded a few large deals during the quarter and pricing also improved, even for existing clients.

For the quarter ended 31 December, 2006, consolidated net profit has jumped 44.9 per cent to Rs 1,116.1 crore, or Rs 11.41 per share, as compared to Rs 770.28 crore, or Rs 7.87 per share. Sequentially, net profit has gone up 9.56 per cent from Rs 1,018.68 crore, or Rs 10.41 per share, for the previous quarter.

Consolidated revenues for the quarter increased 40.72 per cent to Rs 4,873.44 crore from Rs 3,463.1 crore for the previous year quarter. Revenues were higher by 8.42 per cent sequentially from Rs 4,493.84 crore for the previous quarter.

Both top line and bottom line growth rates in dollar terms are better, indicated strong business momentum and improved pricing.