TCS profit soars 52% in second quarter

The software giant’s net profit stood at Rs 576.40 crore in Q2, a growth of 51.81 per cent over the same period of last year and a healthy rise of 14.10 per cent over Q1 of this year. Infosys which reported its results on Tuesday had posted a profit growth of 15.2 per cent on a sequential basis (Q2 with Q1) and 48.6 per cent growth on year-on-year basis (Q2 of this year with Q2 of last year).

During the second quarter ended September 30, TCS saw its revenues soar by 43.58 per cent to reach Rs 2,430.70 crore over the same period during the previous year and a 13.93 per cent rise over the Q1 ended June 30.

As the stock markets were closed on Wednesday, the market response to the results will be known only on Thursday. TCS share had closed at Rs 1,085.05 on the BSE on Tuesday. ‘‘We were expecting a profit growth below 50 per cent… and we are surprised with this (results),’’ said an analyst with a local brokerage.

When asked, TCS Managing Director S. Ramadorai refused to give any future earning guidance saying ‘‘we won’t give out any forward-looking statements’’.

Speaking to the media on Wednesday, Ramadorai said, ‘‘We have shown a healthy double digit growth in all geographies and have added new clients. We have also added 3,974 new employees and have been able to contain the attrition rate at 7.9 per cent’’.

Its turnover for the first half of 2004-05 touched Rs 4,630 crore ($1 billion) as against Rs 3,823 crore in the same period of last year. Analysts expect the company to cross the Rs 10,000 crore turnover mark for the full year of 2004-05.

Ramadorai also said fully diluted EPS at the face value of Re 1 for Q2 on an equity base of Rs 48.01