TCS beats street, net at Rs 797 cr

Riding high on its BPO and consulting businesses, Tata Consultancy Services (TCS), the country's largest software company, today announced a 37.63 per cent rise in its net profit to Rs 796.69 crore during the quarter ended June 30, 2006.

The figure for the corresponding quarter last year stood at Rs 578.86 crore.

The company's total income during the period went up by 52.25 per cent "" from Rs 2276.32 crore to Rs 3465.9 crore. CEO and Managing Director S Ramadorai said TCS expected to post this growth rate during the current year.

TCS' closest rival, Infosys Technologies, had reported a 50 per cent rise in quarterly profit, surpassing analysts' estimates, and raised its full-year forecast.

TCS' performance also beat expectations. Demand for outsourcing from western firms, which are seeking to cut costs, is expected to remain strong, and software firms have estimated that contracts worth $100 billion will be up for grabs over the next two years.

On a consolidated basis, TCS' net profit went up by 39.96 per cent to Rs 882.66 crore in the quarter under review, from Rs 630.62 crore in the corresponding period last year.

Its total income rose to Rs 4,258.19 crore "" up 56.49 per cent "" from Rs 2,721.02 crore recorded during the corresponding period last year.

In dollar terms, the revenues stood close to $1 billion ($918 million) in the first quarter.