TCS net profit up 76%, offers 1:1 bonus

Stunning infotech results feed hopes of better India story.

Tata Consultancy Services (TCS) has posted 76.38 per cent growth in net profit at Rs 832.12 crore for the quarter ended March 31, 2006, against the corresponding previous quarter's Rs 471.77 crore.

Total income during the period went up by 43.85 per cent to Rs 3,709.21 crore from Rs 2578.52 crore in the same period last year.

The company's consolidated results according to the US GAAP showed that its net profit went up by 50 per cent to Rs 2,966.75 crore in 2005-06 after posting a 36 per cent rise in total income at Rs 13,252.15 crore. The income growth of 36 per cent was more than the industry average.

Buoyed by the good show, the company announced its maiden 1:1 bonus ratio, which means shareholders will get one bonus share for every equity share they hold.

The company also announced final dividend of Rs 4.50 per share, taking the total dividend to Rs 13.50 for 2005-06. The face value of the TCS stock is Re 1.

Earnings per share (EPS) stood at Rs 15.74 at the end of the quarter ended March 2006. EPS for 2005-06 increased to Rs 60.63 from Rs 42.02 in 2004-05.

S Ramadorai, CEO and Managing Director, said, "An outstanding performance in the fourth quarter has rounded off a defining year for the company, marked by large deals, strategic acquisitions, expansion in size and its transformation into a global corporation."

He added that the company was poised for "valuable growth opportunities" and it had the "right structure and leadership globally to take advantage of the tremendous opportunity."

TCS plans to add 30,500 people in this financial year. It made 9,200 offers for new recruits in various campuses. Its active customers at the end of the fourth quarter stood at 748, of which 89 were added in the quarter. TCS stock closed at Rs 1,903.60 on the BSE, 5.94 per cent higher than the last close of Rs 1,796.85.