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India's TCS first quarter net profit up seven pct
India's largest software exporter Tata Consultancy Services said Wednesday its first quarter net profit rose by seven percent on weak economic conditions across global markets, dealers said.
TCS said net profit for the three months to June rose to 12.9 billion rupees (300 million dollars) from 12.03 billion rupees a year earlier, according to Indian accounting norms, a performance roughly in line with expectations.
Income in the first quarter rose nearly 22 percent to 65.3 billion rupees, a statement to the Mumbai stock exchange said.
TCS shares fell 22.3 rupees or 2.98 percent to 727.35 ahead of its earnings statement, while the benchmark 30 share Sensex fell 100.39 points or 0.79 percent to 12,575.8.
The company showed a 4.9 percent net profit growth at 12.43 billion rupees, on revenues growth of 24.3 percent for the June-end quarter, according to US accounting norms.
Dealers had expected software firms to show weak earnings, hit by weak economic conditions in the United States, which accounts for a majority of the market for India's software exporters.
TCS, which is part of India's diversified Tata empire, earns nearly half of its revenues from banking and financial services in an industry that relies on India's cheap but skilled English-speaking workforce.
"We have been able to respond to a challenging macro environment. There are uncertainties which can become an issue for some clients," chief executive S. Ramadorai told media on Wednesday evening.
"We are cautiously optimistic for the rest of the year," he added.
TCS added 35 new clients and 8,982 employees in the last quarter.
"Our major markets, North America, UK and Europe grew by eight percent (in rupee terms)," said N. Chandrasekaran, TCS chief operating officer.
By June-end, TCS employed 116,300 people from 64 countries.
The company finalised twelve deals in the last quarter and disclosed that talks were on for at least 20 more.
"The earnings matched broad market consensus. From a price perspective, TCS appears an attractive valuation, despite a tough business outlook ahead," said Apurva Shah, head of research at brokerage Prabhudas Lilladher.
© 2008 AFP
TCS shares fell 22.3 rupees or 2.98 percent to 727.35 ahead of its earnings statement, while the benchmark 30 share Sensex fell 100.39 points or 0.79 percent to 12,575.8.
The company showed a 4.9 percent net profit growth at 12.43 billion rupees, on revenues growth of 24.3 percent for the June-end quarter, according to US accounting norms.
Dealers had expected software firms to show weak earnings, hit by weak economic conditions in the United States, which accounts for a majority of the market for India's software exporters.
TCS, which is part of India's diversified Tata empire, earns nearly half of its revenues from banking and financial services in an industry that relies on India's cheap but skilled English-speaking workforce.
"We have been able to respond to a challenging macro environment. There are uncertainties which can become an issue for some clients," chief executive S. Ramadorai told media on Wednesday evening.
"We are cautiously optimistic for the rest of the year," he added.
TCS added 35 new clients and 8,982 employees in the last quarter.
"Our major markets, North America, UK and Europe grew by eight percent (in rupee terms)," said N. Chandrasekaran, TCS chief operating officer.
By June-end, TCS employed 116,300 people from 64 countries.
The company finalised twelve deals in the last quarter and disclosed that talks were on for at least 20 more.
"The earnings matched broad market consensus. From a price perspective, TCS appears an attractive valuation, despite a tough business outlook ahead," said Apurva Shah, head of research at brokerage Prabhudas Lilladher.
© 2008 AFP
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