TCS clocks Rs 1,203 crore profit for first quarter

Mumbai, July 16 (UNI) Leading software solution company, Tata Consultancy Services posted a net profit Rs 1,203 crore which is up by 36.3 per cent for the first quarter of the financial year 2007-08.

During the first quarter, the company added 54 new clients and launched a special business unit, TCS Financial Service. The volume of business grew by 7.6 per cent for the first quarter.

The growth in the first quarter is mainly driven by the Banking and Financial Service Institution (BFSI) sector which recorded a growth of 13 per cent followed by other verticals of the company.

Talking to mediapersons here today, Company CEO and MD S Ramadorai said ''This quarter has validated the strength of our business model and our ability to respond to the external financial environment and drive growth under challenging circumstances.

''Despite factoring wage hikes and an appreciating rupee, we have maintained profitability by great execution,'' Mr Ramadorai said.

In terms of dollar, the company's revenue grew by 8 per cent. Due to the appreciating rupee, there will be an increase of 3 to 5 per cent in contract renewals.

Company Chief Financial Officer S Mahalingam said ''The company will close 20 deals in excess of USD 50 million in current fiscal.'' In order to counter the impact of the appreciating Indian rupee against the US dollar and other major currencies at the end of quarter one, TCS had about USD 2.5 billion outstanding in hedges.

The company at present has six customers with annual billings of over USD 110 million. And 33 out of 50 global customers has turned into full services play customers during this quarter.

UNI