TCS Q3 net up 5.6% at $171.13 million
By agencies   |   Friday, 13 January 2006, 20:30 IST
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MUMBAI: Driven by new client wins and ramp-ups from contracts won in the previous quarters, Tata Consultancy Services (TCS) has reported a 5.57 percent increase in its consolidated net profit for the third quarter ended on December 31, on the back of a 28.7 percent increase in revenues. The company’s net profit for the quarter amounted to $171.13 million as against $162.04 million reported during the same period a year ago. This is no modest profit increase, according to S Ramadorai, CEO and MD of TCS. “Last year, the third quarter saw a foreign exchange realization of $24.77 million, which was a one-time gain. If you take away that, our real profit growth is phenomenal,” he said. Against that, TCS's net loss from the impact of the fluctuation of the rupee during the quarter currently ended was around $10.45 million. “Solid volume growth on the back of key customer wins during earlier quarters, as well as significant domain-led engagements in verticals like BFSI (banking and financial services and insurance), retail and utilities continued to fuel TCS' growth during Q3,” he said. Income from operations, growing over 28 percent, touched $747.27 million ($580.45 million) Employee costs and overseas business expenses drove up total expenditure by 28.8 percent, at $532.95 million as against $413.86 million earlier. The company's top client GE's contribution to revenues increased to 6.4 percent during the quarter from 5.8 percent in the second quarter of the current financial year. However, it fell to 11.4 percent of international revenues, down from 12.3 percent in the immediate previous quarter. For the next quarter, TCS sees growth arising from its various strategic initiatives, he added.

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