TCS Q1 profit down 4.7 p.c. to Rs 1906 cr

BANGALORE, INDIA: India's largest IT services provider Tata Consultancy Services (TCS) on Thursday reported a decline of 4.7 per cent in its net profit to Rs 1906 crore for the quarter ended June 30, 2010, as against Rs 2001 crore in the same period previous year.

However, on Year-on-Year basis, profit grew 24.3 per cent.

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Revenue was up 6.2 per cent at Rs 8217 crore from Rs 7738 crore during the same period last fiscal.

The company said its net profit margin rose 22.5 per cent which is a rise of 134 basis points.

The company has registered a gross addition of 10849 employees and retained 3271 of them. During the quarter, TCS added 36 new clients.

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TCS CEO and MD N Chandrasekaran said, “This has been a quarter of complete outperformance. Our balance growth was driven by disciplined execution and strong demand across markets and industry sectors.”

“While we remain alert about the changing macro dynamics in many markets, our customer centric business model is very relevant and helps us participate in the ongoing recovery,” he added.

Chandrasekaran further said, “We have signed 10 large deals across industries and across market during first quarter. Overall it’s a very good performance.”

“The performance is very holistic for this quarter. Sectors such as telecom, energy and utilities, high tech and banking, financial services and insurance gave a double digit growth,” he added.

While, the Europe crisis did show impact on Infosys Q1 results announced earlier this week, TCS reported growth in the troubled region. “We have grown in Europe in constant currency terms and have signed deals in Europe. With our constant engagements with clients, we are very positive,” Chandrasekaran commented.

Moreover, he observed that the current demand outlook remains very good but the macro-economic condition is dynamic, especially in Europe. The CEO added, “We are very aware and carefully watching the macro economic environment whether it is Europe, the U.S. or any other markets.”