By IANS,
Mumbai : Despite fears of a global meltdown in the IT sector, India’s leading software service provider Tata Consultancy Services (TCS) has reported a 19.3 percent growth in net profit at Rs.50.26 billion ($1.25 billion) in 2007-08 fiscal.
Under the Indian GAAP (generally accepted accounting principles), the company reported a total income of Rs.228.63 billion in the year, marking a 22.36 percent rise over the previous fiscal, said a release by TCS, Monday.
The company in the January-March quarter clocked a growth of 4.15 percent at Rs.12.45 billion over the corresponding period of 2006-07. The total income in the same period also went up by 18.13 percent with the revenues touching Rs.60.98 billion.
The earnings per share (EPS) for 2007-08 went up to Rs.51.36, which was Rs.43.05 in the last quarter of the previous fiscal.
According to TCS chief financial officer and director S. Mahalingam: “One of the primary reasons behind the robust growth was the clocking of 20 deals totally valued at $50 million during 2007-08. This resulted in the new growth services comprising BPO, assurance infrastructure services and consulting which added revenues by 52 percent.”
“Despite the fact that rupee appreciated 11 percent, our cost of revenues remains at the same level as last year. In fact we managed to retain net margins at 22 percent in face of all challenges,” her added.
In the release, chief operating officer and executive director N. Chandrasekaran stated that the company added 212 customers and also closed a 10-year deal worth $1.2 billion with Dutch media firm Nielsen Co.
This resulted in the total dividends for the year touching at Rs.14 per share with a payout ratio at 27 percent. On the global front, the revenues for 2007-08 in the UK crossed $1 billion while in Continental Europe it touched $500 million. Similarly, the company also opened new development centres in Cincinnati (US), Mexico and Morocco.
TCS vice-president and head of global human resources Ajoy Mukherjee said the company hired over 35,000 people during the year and has made campus offer to over 22,000 candidates.