TCS Q2 net profit surges 23 p.c.

NEW DELHI: Tata Consultancy Services has posted a net profit of Rs 1252 crore for the second quarter ended on September 30 2007, up by 23 per cent when compared to Rs 1019 crore posted during the corresponding quarter last year.

The revenues stood at 5,640 crore, up by 25.4 per cent from the revenues reported for the year-ago period.

S Ramadorai, chief executive officer and managing director, said, We have underlined our leadership position by earning revenues of Rs 10,843 cr during the first half of this financial year by accelerating our growth rate and improving our profitability in Q2.”

“Our strategic investments in new services like consulting, infrastructure and platform-based BPO as well as new markets are helping accelerate growth and diversify our revenue base, thereby reinforcing our full service capability,” he added.

“Our focus remains on twin pillars of growth and profitability. In Q2, we have absorbed the impact of the rupee appreciation and improved our profitability. We remain confident that our hedging program and cost management levers will help us expand margins during the rest of the year,” said S Mahalingam, chief financial officer.

“We remain on target to meet our annual hiring plans and have added over 12,000 employees during Q2,” said S. Padmanabhan, executive director, Human Resources “Our ability to keep the attrition rate stable underscores our robust employee management programs to look after the welfare and global career aspirations of our 100,000-strong employee base.

During Q2, TCS became the first Indian IT company to cross the 100,000 employee-mark. There was a gross addition of 12,523 employees in Q2. The net addition of employees was 9,268. TCS also added 966 employees in overseas subsidiaries and branches.

TCS’ attrition rate in Q2 remained steady at 11.5 per cent overall with 10.9 per cent attrition rate in the IT services business and 17.9 per cent attrition rate in BPO.