Contact:
Julian Mattocks
Phone: +43-1-81140-308
E-Mail: mattocks@pressetext.com
| Pressbox | 
|
Bombay (pte055/20.04.2005/16:15) - The largest Indian software company Tata Consulting Services http://www.tcs.com has become the first Indian information technology company with annual revenue of higher than two billion dollars, despite announcing disappointing fourth quarter results, which reflect the weak dollar and increased employee bonuses. As the Wall Street Journal (WSJ) http://www.wsj.com reports, for the fourth quarter ended on March 31, Tata's net income fell by 34 per cent to 4.71 billion rupees (83 million euros). For the entire year ended March 31, profit rose by 38 per cent to 22.56 billion rupees (397.3 million euros). The company's revenue for the entire year increased by 37 per cent to 92.27 billion rupees (1.63 billion euros).
According to the WSJ, analysts had expected profits for the fourth quarter of around 6.6 billion rupees (116.2 million euros). Fourth-quarter revenue was fairly flat at 25.85 billion rupees (455.3 million euros). The company did not disclose a profit figure for the same quarter last year, as it wasn't listed at the time. Tata raised 1.2 billion dollars in an initial public offering on the Bombay Stock Exchange in August 2004.
According to Tata, a weaker dollar hurt growth. As most of the company's earnings are in dollars, a weaker dollar means its profit is smaller when exchanged for rupees, the company said. Putting aside money for bonuses for its growing pool of employees also hurt profits, it added. It added 1,775 employees during the quarter, bringing its total to more than 40,000.
Indian software rival Infosys, the second largest player in the Indian software market, last week said that demand for outsourcing services continue to climb. As the WSJ reports, the company reported that its quarterly profit rose by 67 per cent from a year earlier.
(end)
|
|
