India?s largest IT company, Tata Consultancy Services Ltd (TCS), on Monday beat market expectations to post a 36% jump in net profit at Rs 1,202.93 crore for the first quarter ended June 30, 2007, compared to Rs 882.66 crore in Q1, FY07. The performance was boosted by new orders and raised fees for managing networks and call centres. Total income rose 27% at Rs 5364.67 crore for the quarter, compared to Rs 4,225.62 crore in Q1, FY07.
S Ramadorai, CEO & MD, TCS, said, ?Despite factoring in wage hikes and an appreciating rupee, we have maintained profitability by great execution, demand creation and strong financial management.? The board of directors of the company declared an interim dividend of 300%, that is, Rs 3 per equity share of Re 1 each.
The announcement came after markets closed on Monday, but the company?s shares were already down 0.79% to close at Rs 1,127.90 on the BSE in anticipation of a sluggish performance.
Rival Infosys had last week said its first-quarter sales rose 25% to Rs 3,773 crore for the quarter, falling short of analysts? median estimates and its own April forecast, because of the rupee?s gains.
S Mahalingam, CFO, TCS, said, ?Though our margins were impacted by the drastic rupee appreciation as well as planned wage increase during Q1, we have been successful in mitigating these factors through productivity increases, cost management as well as hedging gains.? In dollar terms, TCS revenues grew by 8% in Q1, driven by volume increases with an upward pricing bias.