— Photo: Shashi Ashiwal

VOLUME DRIVEN: Managing Director and CEO of TCS, S. Ramadorai (left), with Head-Global Operations and Sales, N. Chandrasekaran, announcing the company's results in Mumbai on Tuesday.

MUMBAI: Tata Consultancy Services (TCS) has reported a robust growth on a consolidated basis in the first quarter ended June 30, 2006, with its net profit up 35 per cent at Rs. 882.66 crore against Rs. 630.62 crore on a 46 per cent higher operational income at Rs. 4,227 crore (Rs. 2,682.30 crore). The company has announced a dividend of Rs. 3 per share.

The profit before interest, depreciation and tax was up 33 per cent at Rs. 1,101.24 crore (Rs. 826.97 crore). Addressing the media here on Tuesday, S. Ramadorai, CEO and MD, TCS, said, "at TCS, the management continues to focus on driving sustainable, robust growth and Q1 has been marked by strong growth in volumes coupled with increasing traction for our new growth engines like BPO and consulting.

"Our global network delivery model has been validated by customers who are increasingly leveraging these centres effectively to take advantage of our bouquet of full services on offer.''

As is normal in Q1, the EBIDTA (earnings before interest, depreciation, taxation and amortisation) margins of the company were lower at 25.32 per cent against the year ago level of 28.28 per cent.

S. Mahalingam, CFO, TCS, said, "this quarter has been purely volume growth.

"The earnings before interest, depreciation and tax margins are lower due to some factors like increase in salary to Indian employees by 15 per cent, the 950 employees of Diligenta, U.K., coming on board and the capacity build-up costs. On an annual basis, however, we will be maintaining margins.''

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