MUMBAI: Country's largest software firm Tata Consultancy Services today reported 32% jump in consolidated net profit at Rs 2,169.21 crore for the second quarter ended September 30, 2010, driven by rising order wins from its mainstay financial clients.
As per Indian accounting norms, the company had a net profit of Rs 1,642.21 crore in the July-September 2009 quarter, TCS said in a filing to the Bombay Stock Exchange.
"It has been a quarter of superior performance across the board, driven by volume growth of over 11 per cent. In uncertain economic conditions, our results are a milestone on the path to strong demand recovery," TCS CEO and MD N Chandrasekaran said.
TCS, part of the Tata Group that spans commodities, autos and services, added 19,293 people during the quarter, the highest ever for the company, taking the total headcount to 1,74,417 at the end of September quarter.
Income from operations rose to Rs 9,286.39 crore in Q2, up from Rs 7,435.23 crore in the year-ago period. It added 30 new clients during the quarter.
Under US accounting standards its net profit rose to Rs 2,106 crore ($475 million) from Rs 1,624 croe reported last year.
TCS said that the macro environment is uncertain and the scenario will continue like this for sometime. The company also said that attrition is of some concern but is manegable.
"It has been a quarter of strong revenue and margin performance all around," TCS CFO S Manhalingam said.
The board has proposed an interim dividend of Rs two per equity share on a face value of Re one each.
Last week, rival Infosys Technologies Ltd beat estimates and raised its annual sales forecast, but warned currency volatility could crimp growth for India's $60 billion outsourcing sector.
A strong rupee is a cause for concern for the sector, which draws more than half its revenue in dollars and has significant rupee expenses, which could squeeze margins.
"With our major operating currencies continuing to be volatile, we remain vigilant on this front," Mahalingam said.
Shares in TCS, valued at about $43.5 billion, have risen over 31 percent percent this year, outpacing a near 17 percent percent gain in the sector index and a 16 percent rise in the broader market.
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