Tata Consultancy Services Ltd (TCS) has posted a 36 per cent rise in the consolidated net profit at Rs 1, 202.93 crore for first quarter ended June 30, 2007, as against Rs 882.66 crore in previous fiscal’s same period quarter.

Announcing the results here on Monday, TCS CEO & Managing Director S Ramadorai said the company’s total income for the quarter stood at Rs 5,364.67 crore, as against Rs 4,225.62 crore in in the previous year’s same period quarter. 

Wage hikes
On a stand-alone basis, the company posted a 35 percent rise in profit after tax at Rs 1, 073.85 crore for reporting quarter as compared to Rs 796.69 crore in previous fiscal’s quarter while its total income rose to Rs 4,335.74 crore from Rs 3,432.85 crore.

Mr Ramadorai said “This quarter has validated the strength of our business model and our ability to respond to the external financial environment and drive growth under challenging circumstances. Despite factoring in wage hikes and an appreciating rupee, we have maintained profitability by great execution, demand creation and strong financial management.”

As at end of Q1, Mr Ramadorai said it had about $2.5 billion outstanding in hedges. The increase in wage bill has been largely neutralised through an enterprise-wide productivity improvement program and putting in measures to control costs.

TCS Chief Financial Officer S. Mahalingam”Though our margins were impacted by the drastic rupee appreciation as well as planned wage increases during Q1, we have been successful in mitigating these factors through productivity increases, cost management as well as hedging gains. This has helped sustain margins at the net level despite a challenging external environment.”

Staff count
At the end of Q1, the total employee strength of the company was 94,902, from 67 nationalities. There was a gross addition of 8,706 employees of which 2,898 were trainees and 4,795 were experienced professionals in India and 1,013 employees in overseas subsidiaries and branches in Q1. The net addition was 5,512 employees.