TCS Q4 net up 50% at Rs 2,001 crore

TCS Q4 net up 50% at Rs 2,001 crore

N Chandrasekaran

Apart from major cost cutting measures, lower loss due to foreign exchange rate fluctuations lead to big jump in profits. In March 2010 quarter the loss on forex fluctuations was at Rs 191 crore as against Rs 781 crore in the same quarter last year.
TCS’ revenue, too, jumped 7.9 per cent YoY to touch Rs 7,738 crore in Q4. On a sequential (quarter-on-quarter or QoQ) basis, TCS’ net profit jumped 9.7 per cent while its revenue increased by 1.17 per cent. TCS also closed 10 large deals in the quarter under review. For full year (FY2009-10), the net profit at Rs 7,001 crore was up 33 per cent while its revenues went up to Rs 30,029 crore a rise of 8 per cent YoY.

Briefing reporters, CEO & Managing Director N Chandrasekaran said: “Our volumes have grown and margins are at near historic highs owing to our ability to react to growth opportunities and execute efficiently during the quarter.” 

 TCS CFO & Executive Director S Mahalingam viewing FY10 as challenging year said: “We have used this time to improve efficiencies and generate better returns by boosting margins.  Our cost base has remained constant, while we have leveraged this to support higher business growth.”  He expects verticals like BFSI, retail, life science verticals to lead the growth in the current quarter. 

Increased headcount
TCS added 10,775 employees in the fourth quarter and will spend $200 million in salary increases in the current fiscal.  Ajoy Mukherjee, Vice president, Head, Global Human Resources said the company went through entire business cycle where controlled hiring in first two quarters gave way to rapid recruitment in the last two quarters.
During the year a European government agency awarded TCS a $500 million plus contract to be the administrator for their pension scheme. It also signed a multi-year deal worth over $100 million with a leading global electronics conglomerate and a world’s leading cruise operator has selected TCS as the IT partner.

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