TCS Q1 net rises 22 per cent to Rs1,520 crore

Tata Consultancy Services Ltd, the country's top software services firm, today reported a 22.2 per cent rise in its first quarter (April-June 2009-10) profit, despite the global economic slump.

The company said net profit in the April-June quarter rose to Rs1,520 crore ($312 million) from Rs1,244 crore during the year-ago period, under US accounting norms.

The company announced a dividend of Rs2 a share. Earning per share (EPS) under US GAPP was up 18.1 per cent at $0.16 from $0.13 last quarter.

"In a volatile and uncompromising environment, TCS has demonstrated its industry leadership by seizing opportunities for growth through operational excellence resulting in a stellar performance for the quarter," S Ramadorai, chief executive and managing director, said, adding, "While we remain vigilant about the environment, TCS is leveraging its global presence and the investments made in developed and emerging markets to deliver our proposition of certainty, which resonates clearly with customers in these challenging times and helps us create long-term value for shareholders."   

TCS said, growth was broad-based across markets and North America continued to maintain its share of revenues aided by semblance of stability in the banking, financial services and insurance verticals. In Europe, demand uptake from recently acquired clients is helping sustain growth momentum and the pipeline remains strong, while demand from emerging markets is being driven by system integration and outsourcing engagements.  

In terms of verticals, the quarter saw some stability in the core BFSI segment with the US leading the trend, while UK and Europe are expected to stabilise in subsequent quarters. In manufacturing, TCS said, the speed of demand recovery will depend on overall economic recovery, while the media and retail verticals continue to grow from new deals as well as ramp-ups of large deals closed in FY09.