MUMBAI, INDIA: The net profit of Tata Consultancy Services (TCS) decreased 6.17 per cent during the fourth quarter to Rs 1,245 crore on a sequential basis, apparently due to the economic slowdown in the US.
Despite posting a muted growth in the fourth quarter of the financial year 2007-`08, the company recorded Rs 22,863 crore revenues with a growth of 22.36 per cent year on year.
Profit after tax was at Rs 5026 crore with 19.31 percent growth over the previous financial year.
In the fourth quarter, the company reported a net profit of Rs. 1,245 crore, up 4.15 per cent year-on-year. Revenues for the fourth quarter stood at Rs. 6,098 crore, up 18.13 per cent year-on-year and up 2.95 per cent over the previous quarter.
The EPS for 2007-`08 was at Rs 51.36 from Rs 43.05 in 2006-`07. The company paid a total dividend of Rs 14 for the reporting year.
At the end of FY 2007-`08, the total employee strength was 111, 407. The company has hired 35,672 people during the year, with 22,116 net additions.
The company claimed that it has the lowest attrition rate in the industry at 12.6 per cent.
Commenting on the results, S. Ramadorai, CEO and MD of TCS, said: "We are extremely satisfied with our annual performance. Our full year results reflect a validation of our strategy and robust business model that has helped us deliver strong growth rates again on an ever increasing base and in a difficult and challenging environment."
He added: "We will deliver sustained, profitable growth in the next financial year, helped by a new, agile customer-centric organization structure that adds value to our clients and employees."
S. Mahalingam, chief financial officer and executive director, said: "This has been a year where we have made significant investments to diversify our revenues and grow in new markets as well as develop new solutions and services. We have also invested to build new delivery centers in India, US, Mexico and Morocco.
"We have been able to retain net margins at 22 per cent, despite challenging external circumstances through prudent financial and treasury management and in a scenario where the rupee has appreciated 11 per cent, our cost of revenues remains at the same level as last year."
