Reacting strongly to the results, the TCS stock at The Stock Exchange, Mumbai (BSE) on Tuesday opened at Rs 1,310 and touched an intra-day low of Rs 1,180 to recover and close at Rs 1,209.75, resulting in a decline of 8.4%.
Commenting on the companys performance, CEO and managing director S Ramadorai told newspersons, Through our strategic initiatives, we have managed to double our revenues in the last two years. TCS dependence on GE has come down from 14.83% during the previous quarter to 13.96% in the fourth quarter.
He added that the company had a net addition of 1,775 employees in the fourth quarter and has made campus offers to 6,384 students during the 2004-05 financial year. With the increase in employees, TCS total employee strength stands at 45,714.
We have announced a 10% hike in salary for employees who are based in India and a 3% hike in salary for offshore employees, said TCS human resources executive vice president and client organisation head S Padmanabhan. He, however, clarified that the employees based offshore have an Indian salary component.
IT index sheds 57 points
The dismal results posted by Tata Consultancy Services took their toll on almost all technology stocks on Tuesday. The BSE IT index was the worst performer shedding 57.2 points or near 2.38 %. The BSE Teck index was the second biggest loser shedding 24.42 points.
Prior to these deductions, net profit during the fourth quarter stood at Rs 611.6 crore, which was 30.13% higher than that of the corresponding quarter for FY04 and down by 15% as compared to Rs 718.61 crore during the immediate preceding third quarter. According to an IT analyst at a foreign research house, the exchange rate fluctuations have adversely impacted TCS.