Net profit surges 50.1% on year ago quarter
Tata Consultancy Services has reported revenues of INR77.38bn in the fourth quarter of 2009, up 7.9% compared to same period last year. Revenues rose 1.17% sequentially.
Operating profit rose by 29.1% to INR21.65bn, compared to same period a year ago. Operating margin for the quarter increased 51 basis points sequentially at 28%.
For the quarter ended March 31, 2010, the company posted a net profit of INR20.01bn, up 50.1% compared to same period a year ago. Net profit grew 9.7% quarter over quarter. Net Margin was up by 201 basis points sequentially at 25.9%.
Chandrasekaran, CEO and MD of TCS, 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.”
For full year, the company reported revenues of INR300.29bn, up 8% compared to same period last year. Net profit was up by 33% to INR70.01bn.
Among verticals, revenue from Banking, Financial Services and Insurance (BFSI) increased to INR134.88bn from INR119.28bn in the previous year and revenue from Manufacturing decreased to INR24.33bn from INR27.21bn last year. Retail and Distribution revenue rose to INR31.8bn from INR24.79bn, while revenue from Telecom fell to INR43.65bn from INR44.96bn last year.
Under US GAAP, the company’s Q4 revenue was up 17.61% to $1.69bn, compared to the same period last year. Net profit rose 59.69% to $420m.
Mahalingam, chief financial officer of TCS, said: “While FY10 has been a challenging year, we have used this time to improve efficiencies and generate better returns by boosting margins. Our cost base has remained constant and we have leveraged this to support higher business growth.
“Looking ahead, we will continue our focus on managing costs and efficiencies while ensuring that investments are aligned to capture growth opportunities that emerge across the spectrum.”