TCS net zooms 30 percent on volume growth (Lead)

January 17th, 2011 - 10:25 pm ICT by IANS  

Mumbai, Jan 17 (IANS) India’s largest IT bellwether Tata Consulting Services (TCS) posted consolidated net profit of Rs.2,370 crore (Rs.23.70 billion) in the third quarter of the current fiscal (2010-11), registering about 30 percent year-on-year (YoY) growth, according to the Indian accounting system.In a regulatory filing Monday, the global software firm said total income during the October-December quarter (Q3) under review rose to Rs.9,663 crore (Rs.96.63 billion), posting 26 percent growth.

Sequentially, net income rose 9.3 percent from Rs.2,169 crore (Rs.21.69 billion) and total income 5.4 percent from Rs.9,357 crore (Rs.93.57 billion) in second quarter (July-September) of this fiscal.

Under the US accounting system (GAAP), net income shot up 35 percent YoY to $517 million, which is 14 percent up sequentially and gross revenue 31 percent to $2.14 billion, which is sequentially up seven percent.

Operating margin at 28 percent during the quarter was near historic high and volume growth was 5.7 percent on annualised basis, the company said.

“Sharp focus on our strategy with rigorous execution discipline has helped us capture volumes, defend our margins and deliver another stellar quarter,” TCS Chief Executive N. Chandrasekaran told reporters here.

The company also added 35 clients during the quarter under review.

Hiring also was the highest ever during the quarter, with gross addition of 20,219 and net addition of 12,497, taking the total headcount to 186,914 at the end of December.

The company also declared an interim dividend of Rs.2 per equity share of Re.1 each, which is about 200 percent.

“The record date for the payment of third interim dividend is Jan 28 and will be paid to the shareholders on or after Feb 11,” the company said.

Unlike the other two leading IT bellwethers, Infosys Technologies and Wipro, TCS does not give guidance for the quarter or year as a company policy.

“Our ongoing out-performance has been the result of a sustained effort from all operating teams to focus on growth with profitability. As we grow in size, we will have more levers at hand to combat headwinds and maintain our profitability while continuing to growth,” Chief Financial Executive S. Mahalingam said.

The company’s share gained 1.74 percent on the Bombay Stock Exchange (BSE) to close at Rs.1,138.15 from Rs.1,118.70 Friday.

Though the scrip opened at Rs.1,139, it touched a high of Rs.1,145.45 during the intra-day trading.

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