TCS Q4 net up 7%, bonus issue proposed
Tata Consultancy Services Ltd today reported a 7% rise in its net profit to Rs 1,333 cr in the fourth quarter ended March 31 from the year- ago period, and promised a bonus share issue for investors amid a global slowdown that has made key rival Infosys cautious.business Updated: Apr 20, 2009 21:31 IST
Tata Consultancy Services Ltd, the country's top software service company, on Monday reported a 7 per cent rise in its net profit to Rs 1,333 crore in the fourth quarter ended March 31 from the year- ago period, and promised a bonus share issue for investors amid a global slowdown that has made key rival Infosys cautious.
The total revenues for the quarter grew 18.5 per cent to Rs 7,172 crore.
TCS has decided freeze increments and marginally lowered variable pay in its business process outsourcing (BPO) unit. The focus this year would be on improving internal efficiencies to boost profits, as business conditions would put downward pressure on earnings.
The 2008-09 revenues of TCS jumped 23 per cent year on year at Rs 27,813 crore while annual net profit grew five per cent to Rs 5,256 crore.
TCS CEO S Ramadorai put the total employee strength of TCS at 1,43,761 professionals and disclosed having made 24,885 campus offers for 2009-10. “We have added 48,595 employees to TCS in the year,” he said.
"We are expecting significant margin pressure in 2009-10 from various sectors in the US including manufacturing and automobiles. We are expecting single digit margins," said N Chandrasekaran, COO and Executive Director of TCS. The company Board of Directors have recommended 1:1 bonus share issue.