Tata Consultancy records small profit for the quarter - Revenues grow by $1.5 billion, up by 21% year on year

By Subhankar Kundu @ Thursday, July 17, 2008 10:52 AM

Section - Business/Financials

Tata Consultancy Services (TCS) announced its Q1 results, with revenues of $1.5 billion, growing by 21% year-on-year.  But  its net profit of $296 million only rose up seven percent, year on year. The major markets of TCS’ operations are the US, UK and Europe  growing at 2.2% quarter-on-quarter. The inflow of cash and investments crossed $1 billion.

Chief executive officer and managing director, S. Ramadorai sounded quite confident and said TCS has been able to respond to the challenging macro environment and drive growth in the business under tough operating conditions and manage costs. TCS is cautiously optimistic about the rest of the year.

First quarter revenues stand at $1.5 billion, and 35 new clients were added during the quarter by TCS. The Company added 8982 employees, bringing its total headcount to 116,308 from 64 nationalities. “

The vice president of human resources, , Ajoy Mukherjee claimed TCS’ retention rates for employees continue to be the highest in the industry and it's going to carry on hiring during this  financial year.

S. Mahalingam, the chief financial officer, said TCS is focused on extracting greater operational efficiencies through rigorous cost management programs that have helped it hold operating margins steady in Q1 despite the impact of the annual wage increases during this quarter. In shorthand, that means it's cutting costs. X