*Mumbai, April 17:* India’s largest IT company Tata Consultancy Services
(TCS) on Monday exceeded analyst predictions by ending 2005-06 a whisker shy
of $3 billion with consolidated revenues of Rs 13, 386.23 crore ($ 2.97
billion US GAAP revenues), a growth of 35.94%. Net profits grew 50.07% to Rs
2,966.75 crore.

TCS also announced a 1:1 bonus — its first as a listed company — and a final
dividend of 450% (Rs 4.5 per share on every Re 1 share) that took its total
dividend in the fiscal to 1,350% (Rs 13.5 per share).

In comparison, arch rival Infosys Technologies announced a bottomline growth
of 30% on a topline growth of 33.53% last week. It also gave away 1:1 bonus
and a 900% dividend in 2005-06.

Even though TCS results were declared after the market closed on Monday, the
stock rose Rs 106.75 through the day in anticipation of good results to Rs
1,903.6 on the BSE, up 5.9%. Sensex grew 2.7% on Monday. The stock also
touched an intra-day high of Rs 1,910.

TCS has won a $500 million contract for which the letter of intent has
already been signed. It was in the race for Citigroup’s $500 million
application development and maintenance contract for five years.It has won
another $35 million deal from a major European telecom service provider.

The company’s merger with Tata Infotech last fiscal aided the financials
marginally but its net impact was negligible with revenues of Rs 700 crore,
TCS CFO S Mahalingam told FE. Operating margins for the fiscal were impacted
to the extent of 1.3% due to rupee appreciation and 1% because of the Tata
Infotech merger.

Last fiscal has been one of the best for the 38-year old TCS which bagged
$850 million outsourcing deal from UK's insurance major Pearl Group. It has
been the most aggressive among Indian IT companies in global acquisitions.
In 2005-06, it acquired banking solutions company FNS of Australia and
banking and pensions BPO firm Comicrom of US. The contribution of Comicrom
to net profits is less than Rs 100 crore. TCS Q4 net profit grew 76.38% to
Rs 832.12 crore while revenues went up 43.85% to Rs 3,709.21 crore. The
company added 330 clients during the fiscal, 89 of whom were added in Q4. It
also added 21,140 employees taking the tally to 62,832 from 53
nationalities. TCS is the first IT company in India to cross 60,000
employees. The...
http://www.financialexpress.com/news/tcs-profit-up-50-declares-11-bonus-1-350-dividend/155589/

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