The Hindu : Business : TCS second quarter net up 52 per cent at Rs. 342 crores

Online edition of India's National Newspaper
Thursday, Oct 14, 2004

Business

Business

TCS second quarter net up 52 per cent at Rs. 342 crores

By Our Staff Correspondent

MUMBAI, OCT. 13. Tata Consultancy Services (TCS), the leading IT services provider, has reported a sterling performance for the second quarter of 2004-05 with a net profit of Rs. 342.19 crores, an increase of 51.8 per cent over the same period in the previous year. Total income for the period was Rs. 2,044.82 crores.

The company's gross margin, operating margin and net margins were 45 per cent, 27 per cent and 23 per cent respectively. The company provided Rs. 2.92 crores for interest, Rs. 30.73 crores for depreciation, Rs. 67.07 crores for current tax and Rs. 9.91 crores for deferred tax.

For the half year ended September 2004, the company reported a net profit of Rs. 760.91 crores on a total income of Rs. 3,823.51 crores. It provided Rs. 5.72 crores for interest, Rs. 60.95 crores for depreciation, Rs. 125.94 crores for current tax and Rs. 18.14 crores for deferred taxes.

Interim dividend

The company, in August, issued and allotted 22.77 million equity shares of Re. 1 each at a premium of Rs. 849 per share, consequent to the issue of equity shares under an initial public offer. The share capital stood at Rs. 47.83 crores after the issue. The board of directors of the company will meet next week to consider an interim dividend. The company has registered a double-digit growth over the previous quarter in all geography segments namely Americas, Europe, Asia Pacific, India and others. Also, during the quarter, the company added 52 new clients. Among these, three new clients came in the Remote Infrastructure Management and three new clients were added for BPO services.

In terms of geographical break-up, while the U.S. accounted for 59.7 per cent of revenues, Europe 22.8 per cent and India 11.27 per cent.

Process Consulting under the `Value Engines' initiatives was added and three new clients were added and this service was offered to 17 clients.

The revenue from GE contributed to 15.9 per cent of the overall revenue during the quarter; down from 17 per cent in the previous quarter. GE's contribution to TCS revenues has been falling over the last few quarters.

New clients have been added and services by GDCs (global development centres) in Uruguay, Brazil, Hungary and China. "Today these four GDCs serve 35 clients with each providing services to at least five clients," said S. Ramadorai, CEO and Managing Director, TCS.

Human resources

In terms of human resources, TCS added 3,974 employees during the year taking the total number of employees to above 40,000. Attrition was 7.9 per cent for the last year. The company has set up a training centre at Buffalo, New York, for associates in the U.S. and is in the process of setting up a similar centre at Montevideo, Uruguay.

The company will go in for a foreign listing later and is looking at organic and inorganic growth. The key plus for the company is its ability to deliver large scale system integrated projects on a global scale, said Mr. Ramadorai. He also said that CMC would continue to `stand on its own feet' and that there was no move now to merge the companies.

The company's shares were quoted at Rs. 1,085 on the Bombay Stock Exchange on Tuesday.

Printer friendly page
Send this article to Friends by E-Mail

Business