Tata Consultancy grows despite rising rupee

Tuesday, 16 October 2007, 07:00 Hrs
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Mumbai: Although rupee continues to appreciate, Indian IT bellwether Tata Consultancy Services (TCS) has registered a net profit of $314 million for the quarter ending Sep 30, up by 22.8 percent against last year.

The country's largest software services exporter, TCS, has posted net revenues of $1.42 billion in the second quarter, an increase of 25.4 percent year-on-year.

TCS also added 12,523 new employees during the quarter, of which 966 people were recruited overseas. With this addition, it has become the first Indian IT firm to cross a headcount of 100,000 employees.

"Our strategic investments in new services like consulting, infrastructure and platform-based BPO as well as new markets are helping accelerate growth and diversify our revenue base, thereby reinforcing our full service capability," S. Ramadorai, CEO and managing director, said in a statement.

At the end of the quarter, TCS had about $2.6 billion outstanding in hedges. In addition, it continues to drive margin expansion through rate and productivity efficiencies and a movement of work offshore, the company said.

"In the second quarter we have absorbed the impact of the rupee appreciation and improved our profitability. We remain confident that our hedging programme and cost management levers will help us expand margins during the rest of the year," said S. Mahalingam, chief financial officer, TCS.

It also recorded an attrition rate of 11.5 percent overall with 10.9 percent in the IT services business and 17.9 percent in its BPO operations.

"Our ability to keep the attrition rate stable underscores our robust employee management programmes to look after the welfare and global career aspirations of our 100,000-strong employee base," said S. Padmanabhan, executive director, human resources, TCS.
Source: IANS
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