India's largest software exporter Tata Consultancy Services Ltd on Monday posted an over 50 per cent jump in net profit at Rs 931.32 crore (Rs 9.313 billion) 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 (Rs 36.838 billion) in the second quarter, as against Rs 2,501.30 crore (Rs 25.013 billion) in the year-ago period.
Its net profit stood at Rs 620.32 crore (Rs 6.203 billion) in the second quarter last year. 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 (Rs 100 billion) level. TCS expects annual revenues to cross $4 billion (Rs 18,000 crore) in FY'07, its CEO and Managing Director S Ramadorai told reporters. 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 1,018.68 crore (Rs 10.186 billion) in the quarter ended September 30, whereas the same was at Rs 693.71 crore (Rs 6.937 billion) for the same quarter last year.
The total income of the group was at Rs 4,513.92 crore (Rs 45.139 billion) for the quarter ended September 30, where as the same was at Rs 2,966.05 crore (Rs 29.660 billion) 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.
