TCS net profit spurts 44 per cent
TCS says the fourth-quarter net profit soared nearly 44 per cent from a year earlier as firms abroad outsourced more office and software work to India.business Updated: Apr 17, 2007 01:22 IST
India's top software services exporter, Tata Consultancy Services, on Monday said fourth-quarter net profit soared nearly 44 per cent from a year earlier as firms abroad outsourced more office and software work to India.
Tata Consultancy Services, or TCS, said net profit for the three months to March rose to Rs 1,195 crore ($272 million) from Rs 832 crore in the year-earlier period, according to a notice on the Bombay Stock Exchange website.
Income in the fourth quarter rose 40 per cent to Rs 5,267 crore.
For the full year, TCS net profit gained 42 per cent to Rs 4,213 crore on income of Rs 18,910 crore, up 41 per cent from the year earlier.
TCS shares rose Rs 17.45, or 1.38 per cent, to Rs 1,280 on Monday while the benchmark Bombay Stock Exchange Sensex ended up 311.50 points, or 2.33 per cent, to 13,695.58.
TCS said it added 218 new clients in the past year, including 43 in the last quarter.
"Our emerging high-growth services are giving us a superior revenue quality and diversified customer base across markets," said S Ramadorai, chief executive and managing director of TCS.
"We are confident of continuing sustained, profitable growth," he added.
TCS won 12 deals of over $50 million in the year, company executives said.
The company disclosed that it planned to set up a new development centre in Morocco, while boosting finance operations in Brazil, Mexico and China.
TCS is part of the diversified Tata group and employs more than 83,500 people from 60 countries. The Mumbai-based firm earns nearly half of its revenues from banking and financial services in an industry that relies on India's cheap but skilled English-speaking workforce. The rest of its revenues come from manufacturers and telecommunications customers.
TCS listed on the Bombay Stock Exchange in August 2004 after raising $1.2 billion.