TCS Q1 net rises 24 per cent to Rs 1,906.07 cr

Total income increased 14.93 per cent

TCS Q1 net rises 24 per cent to Rs 1,906.07 cr

TCS CEO & Managing Director N Chandrasekaran

Total income of the group has increased by 14.93 per cent from Rs 7,232.54 crore for the quarter ended June 30, 2009 to Rs 8,312.74 crore for the quarter ended June 30, 2010.  Earnings per share stood at Rs 9.71.  TCS board at its meet this day recommended an interim dividend of Rs 2 per equity share of Re 1 each of the company. 

TCS, however, pointed out in notes accompanying the results that the other income for the quarter also includes foreign exchange loss of Rs 47.18 crore – as against net exchange loss of Rs 84.14 crore in the comparable quarter of last fiscal.  It also pointed out that income from ‘operations of subsidiaries’ of Rs 1428.82 crore for the quarter ended June 30, 2010 has not been audited.

Briefing reporters, TCS CEO & Managing Director N Chandrasekaran said “this has been a quarter of complete out-performance. Our balance growth was driven by disciplined execution and strong demand across market and industry sectors.  While we remain alert about changing dynamics in many markets, our customer-centric business model is very relevant and helps us participate in the ongoing recovery.”Responding to a query, he said the company is seeing strong demand for outsourcing services and is currently chasing 15 large deals.

 Further, TCS’ standalone results for the quarter under review showed a net profit after taxes of Rs 1,556.41 crore as compared to Rs 1,276.44 crore for the quarter ended June 30, 2009, while total income has increased from Rs 5,610.86 crore during first quarter of fiscal year 2010 to Rs 6,447.38 crore in first quarter of fiscal year 2011.Utilisation in Q1 FY11 was 82.6 % (excluding trainees) & 74.8  per cent (including trainees). The attrition rate in Q1 for IT Services was 12.3 per cent (LTM), BPO: 20.0 per cent (LTM) while overall attrition was at 13.1 per cent.

 At the end of Q1, the total employee strength of the company was 1,63,700. “We have decided to increase the hiring target for FY2011 to 40,000, an increase of 10,000 from the previous estimate given the strong deal momentum and continuming ramp ups.  We continue to focus on retention...,” said Ajoy Mukherjee, TCS’ Vice President-HR.

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