TCS profit growth slows to 7 per cent | business | Hindustan Times
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TCS profit growth slows to 7 per cent

Tata Consultancy Services posts a consolidated net profit of Rs 1,291 crore for the first quarter ended June 30, 2008.

business Updated: Jul 16, 2008 23:15 IST

The country’s largest software exporter Tata Consultancy Services on Wednesday posted a consolidated net profit of Rs 1,291 crore for the first quarter ended June 30, 2008, an increase of 7.3 per cent against the year-ago period.

The group had recorded a consolidated net profit of Rs 1,203 crore for the corresponding period a year ago, it said in a filing to the Bombay Stock Exchange.

The company’s consolidated total income for the period under review stood at Rs 6,530 crore compared with Rs 5,212 crore for the same period a year ago.

The company’s board of directors also announced an interim dividend of Rs 3 per share on equity share of one rupee each.

TCS registered a standalone net profit of Rs 1,204.01 crore for the first quarter ended June 30, 2008, an increase of 12.1 per cent compared to the year-ago period. It had recorded a net profit of Rs 1,073.85 crore for the same period a year ago.

The company’s total income stood at Rs 5,322 crore as against Rs 4,184 crore for the corresponding period a year ago.

Tata Consultancy’s chief executive officer S. Ramadorai said last month the slowdown in the banking and financial-services industry was still continuing. Banks, financial-service providers and insurers accounted for 44 per cent of Tata Consultancy's sales in the three months ended March 31.

Ramadorai said in April that Tata Consultancy wouldn’t charge customers with contracts worth at least $50 million to move their work to the company’s lower cost centers in India. Some clients who delayed orders during the three months ended March started their projects after the company's offer, he said.

The company’s stock fell 3 percent to close at Rs 728.10 on the Bombay Stock Exchange on Wednesday, its lowest value since November 2, 2005, before the company reported earnings. Shares of Tata Consultancy gained 5.9 per cent in the last quarter, compared with a 14 per cent decline in the Sensex and Infosys’ 21 per cent increase.