Tata Consultancy Services (TCS), country’s largest solutions company, has reported 26.8 per cent increase in revenue for the quarter ended March 2005 as compared to the same quarter last year.
TCS’ revenue was at Rs 2584.5 crore as against to Rs 2037.5 crore. However, on a quarter-on-quarter basis revenue growth was flat. After accounting for non-recurring expenses the income after tax for Q4 was Rs 611.6 crore, up 30 per cent from Rs 470 crore during the corresponding quarter last year. The profit is, however, down by 0.7 per cent in Q4 as compared to Q3 in FY 04-05.
TCS did not give any guidance for the future quarterly performance but expressed confidence that the business across all verticals and clients will have strong growth in the current financial year as a whole.
The company in Q4 suffered a loss of Rs 10.71 on forward cover and made an additional payout of Rs 102 crore for EVA (Employee Value Added) whereas in Q3 TCS made a profit of Rs 110.48 crore on forward cover. When these additional payments are taken in to account, TCS’ net profit was down at Rs 470 crore in Q4 against 700 crore in Q4 last year.
The markets put thumbs down to TCS as its share price nose-dived sharply by Rs 109 to close at Rs 1208 levels, registering a fall of 8.34 per cent, on NSE.
Taken the performance of the full year, there are a few areas to cheer about, though. TCS has become the first Indian company to cross two billion dollar revenue. The revenues, stood at Rs 9727 crore ($2.24 billion), an increase of 36.5 per cent on an YoY basis. Net profits are up 37.8 per cent at Rs 2256 crore.
Commenting on the performance, S Ramodorai, Managing Director, TCS, said, “Consistent with our position as the pioneer of the Indian IT industry, TCS is proud to be the first IT company to cross the US$2 billion dollar milestone.
Through our strategic initiative we have managed to double our revenues and profits in the last two years.”
During the year TCS added 10,871 employees on net basis. The company has also added 256 new clients over the period in consideration.
The company has also reduced its dependence from GE, its biggest client, whose contribution to total revenue has dropped from14.83 per cent to 13.96 per cent in FY 05.
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Wednesday, April 20, 2005
