TCS Q2 Results 2010 : 32% surge in net at Rs 2169 crore

TATA Consultancy Services (TCS) on Thursday reported a 32 per cent rise in net profit at Rs. 2,169.21 crore for the second quarter- ended September 30, 2010 on strong global demand.

The company’s revenues rose 25 per cent to Rs. 9,286 crore during the quarter. Revenue from the North American market alone crossed Rs. 4,500 crore in the second quarter, almost half of the company’s revenue. The board has proposed an interim dividend of Rs. 2 per equity share on a face value of Rs. 1 each.

“ It has been a quarter of superior performance across the board, driven by volume growth of over 11 per cent. In uncertain economic conditions, our results are a milestone on the path to strong demand recovery,” N. Chandrasekaran, chief executive and managing director, TCS, said.

“ Given the growth we have achieved across all industry units, we are very positive about the global demand recovery, going forward, while being watchful in view of the macro- environment,” he added. The operating margin of the company for the September quarter was 28 per cent.

S. Mahalingam, chief financial officer ( CFO), TCS, said, “ It has been a quarter of strong revenue and margin performance all round. With our major operating currencies continuing to be volatile, we remain vigilant on this front.” According to the firm, apart from North America, business from all major markets grew in double digit terms, with Europe leading the pack.

And with the revised outlook for the industry, the firm is planning to hire more talent to cater to the increasing demand. “ Given the recovery in business demand, we will exceed the hiring target we had set for this fiscal year,” Ajoy Mukherjee, vice- president and head, global human resources, said.

The attrition rate in the July- September quarter was 14.1 per cent. At the end of the quarter, the total employee strength of the company was 174,417. “ We have had the highest quarterly gross and net addition of employees in the company’s history on the back of strong growth performance,” Mukherjee said.

The firm also hinted at increasing the pricing of its services towards the end of the year.