TCS posts 26.7% rise in Q1 profit at Rs2,415 cr

Contradicting the market apprehensions that resulted in the scrip losing 2.2% during the day ahead of its result for the first quarter of 2011-12, Tata Consultancy Services (TCS) on Thursday announced a 26.7% rise in its net profit at Rs2,415 crore over the same quarter last year on the back of a strong operating margin led by high utilisation and productivity rates.

Contradicting the market apprehensions that resulted in the scrip losing 2.2% during the day ahead of its result for the first quarter of 2011-12, Tata Consultancy Services (TCS) on Thursday announced a 26.7% rise in its net profit at Rs2,415 crore over the same quarter last year on the back of a strong operating margin led by high utilisation and productivity rates.

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The company also clocked a 31.4% growth in its revenues for the quarter at Rs10,797 crore as TCS added 24 new clients and had 33 clients in the category of $50 million or more as against 27 earlier.

The company saw its operating margin at 26.2% down from 28% as the margin came under pressure due to the annual wage hike that came into effect from April 2011.