TCS Q4 net jumps 50 p.c. YoY to Rs 2001 cr

BANGALORE, INDIA: India's IT major Tata Consultancy Services (TCS) today reported over 50 per cent jump in its net profit for the quarter ended March 31, 2010, beating market estimates, on a surge in demand for outsourcing services and stable fees.

The net profit for the quarter was at Rs 2001 crore, up 50.1 per cent YoY and 9.7 per cent up QoQ. The profit for the financial year stood at Rs 7001 crore, 33 per cent up from the previous financial year.

The revenue for Q4 was Rs 7,738 crore, up 7.9 per cent on YoY basis and 1.17 per cent QoQ. The revenue for the financial year was Rs 30,029 crore, up 8 per cent compared to the previous financial year.

TCS said the net margin for Q4 was up 201 bp sequentially at 25.9 per cent.

The company said in a statement that volume growth for the financial year was at 17 per cent.

N. Chandrasekaran, CEO and MD said, “Our ability to react to growth opportunities and execute efficiently has helped TCS deliver a superior performance for the fourth successive quarter. Our volumes have grown and our margins are at near historic highs.”

Commenting on the performance in 2009-10, Chandrasekaran said that the strong volume growth of 17 per cent during the year has rounded off an exceptional year for TCS.

“Our sales and execution machine is primed and we have laid a solid platform for growth. There is significant traction for our strategy of full services which together with our global engagement model positions us well for accelerated growth,” he added.

S. Mahalingam, chief financial officer and executive director, said, “In the fourth quarter, our focus on superior project execution and efficient utilization of experienced professionals have helped deliver a superior gross margin performance despite strong currency headwinds.”

The company said that the gross addition of the employees was at 16,851 for the quarter, while the net addition was 10,775, with an attrition rate of 11. 8 per cent. During the financial year 2009-10, the net addition was 16,668, while the gross addition stood at 38,063. The total employee strength is 160,429.

Overseas nationals formed over 10,700 or 6.7 per cent of the total employee base with employees from 80 different nationalities.