TCS second quarter profit soars 52%

First Indian firm to touch $1 bn revenue in 6 months.

India's No 1 software company, Tata Consultancy Services (TCS), today reported a net income after tax (before exceptional items) of Rs 576.40 crore under the US Generally Accepted Accounting Principles (GAAP) for the quarter ended September 30, registering a growth of 51.81 per cent over the corresponding quarter of last year. Its consolidated revenue for the second quarter jumped 43.58 per cent to Rs 2,430.70 crore.

With that, TCS became the first Indian software company to cross the $1 billion revenue mark (Rs 4,564.25 crore) in the first-half of the financial year. Going by Indian GAAP accounting standards, TCS reported a consolidated revenue of Rs 4,594.33 crore in the half-year ended September 30.

Profit after taxes from operations in the first half of the year stood at Rs 1,058.30 crore. The company did not provide comparative figures under Indian GAAP for the corresponding period last year.

Leaving out the subsidiaries and group companies, the parent TCS posted a profit of Rs 538.66 crore on revenues of Rs 2,024.89 crore for the quarter. For the first half, TCS clocked a revenue of Rs 3,783.12 crore and a profit of Rs 957.38 crore.

TCS Chairman S Ramadorai said: "The company has achieved double-digit growth over the previous quarter in all geographic segments --- the Americas, Europe, India, the Asia-Pacific and others. We have added 52 clients during the quarter."

Its biggest client, the GE group, contributed 15.9 per cent with the overall revenues during the quarter, compared to 17.1 per cent in the June quarter.

TCS added 3,974 employees during the September quarter, taking the total number of employees to 36,696. Inclusive of its subsidiaries, the company's total employee strength stands at 40,948. The company claimed it had the lowest attrition rate of 7.9 per cent among comparable companies.

As part of its expansion plans, TCS has set up a training centre in Buffalo, New York, and is in the process of setting up similar capabilities in Uruguay.