TCS profit jumps 41% on outsourcing | india | Hindustan Times
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TCS profit jumps 41% on outsourcing

This has led the firm to forecast that it will hire over 30,000 people next year.

india Updated: Apr 18, 2006 01:47 IST

India's biggest software services exporter, Tata Consultancy Services (TCS), said on Monday its full-year net profit jumped 41 per cent as it won strategic deals for work outsourced from abroad.

TCS reported a net profit of Rs 750.06 crore for the quarter ended March 31, 2006 whereas the same was at Rs 426.70 crore for the same quarter in previous fiscal.

Total income stood at Rs 3077.1 crore for the fourth quarter ended March 31, 2006 whereas the same was at Rs 2123.28 crore in the year-ago period, the company informed the Bombay Stock Exchange.

The board of directors have recommended a final dividend of Rs 4.50 per equity share of Re 1 each, subject to shareholders approval.

The company has also approved a bonus issue of equity shares in the ratio of one equity share for every share held by the shareholders, it said.

For the year ended March 31 2006, the company's net profit stood at Rs 2716.87 crore where as the same was at Rs 1831.42 crore in 2005-04.

Total income was at Rs 11282.81 crore for FY 05-06 where as the same was at Rs 8122.81 crore FY 04-05.

Financial results for the fourth quarter and the financial year are not comparable with the previous years figures as they include figures of amalgamated companies.

The company reported 89 new clients in the fourth quarter and took on 3,571 new employees.

The surge in profits and new business led the company to forecast it would hire more than 30,000 people next year and award a bonus issue of one share for every one held.

TCS gained Rs 106.7 or 5.9 percent to 1,903.6 on the Mumbai stock exchange Monday while the benchmark Sensex index rose 302.45 points or 2.6 percent to 11,539.68.