Mumbai: IT major TCS on Monday reported subdued performance for the fourth quarter of the last fiscal owing to difficult conditions in the US with net profit taking a dip quarter-on-quarter basis and revenues rising only marginally.
The company's total revenues for the January-March period were Rs 6,098 crore, which was up only 2.95 per cent over the previous quarter while net profit at Rs 1,245 crore was 6.17 per cent lower compared to the previous quarter.
Chief Operating Officer and Executive Director of the company, N Chandrasekharan, said certain clients in the US had difficulty and delayed their ramp-up, which resulted in dip in the revenue. But he said no project has been cancelled.
He said there is no other sector facing the problem except finance. But he pointed out the company is not cutting back on any capacity buildings.
The company added 53 new clients during the quarter and closed six $50 million-plus deals.
As regards the overall performance for the year, he said the company's revenues were up 22.36 per cent year-on-year at Rs 22,863 crore while profit after tax was up 19.31 per cent at Rs 5026 crore.
CEO and Managing Director S Ramadorai said he was "extremely satisfied with the annual performance."
While stating the company would not give guidance for the next quarter or year, he said, "We will deliver sustained, profitable growth in the next financial year.
Ramadorai said these were volatile times but there were enough opportunities in markets like India, Middle East and Latin America.
Chandrasekaran said TCS was pursuing 25 large deals, all upwards of $50 million, across markets of US, UK, Europe, Asia Pacific.
On pricing, he said the new contracts remain to be with an upward bias while for existing contracts, coming for renewal, the outlook is stable. "For specific clients, who are going through difficult times, we have begun a partnership dialogue looking at a long term value."
However, he clarified it was not a precursor to acquisition.
Company CFO S Mahalingam said currency hedging model of the company has been successful and in the quarter alone, TCS has posted hedging gains of about Rs 70 crore.
The current hedging position of the company stands at $2.9 billion and the company was no exposure to exotic options.
“We continue to carry out comprehensive and proactive hedging operations and aim to maintain our margins," Mahalingam said.
In 2008-09, the company will be hiring 30,000-35,000 people and the wage hikes domestically will be in the range of 8-10 per cent, TCS Head Global HR Ajoy Mukherjee said.
Total employee strength at the year-end was 1,11,407 with 50 per cent associates having more than three years of work experience. The attrition was marginally up at 12.6 per cent.
The company has made 22,450 campus offers, including 4,089 to science graduates.
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