The Hindu Business Line : TCS net rises 71 pc to Rs 519 cr in Q1

TATA Consultancy Service, which is launching its IPO next week, has recorded a 71 per cent jump in its net profit at Rs 519 crore for the first quarter ended June 30, 2004 as compared with Rs 303 crore in the corresponding previous period.

According to the figures released during the first round of road shows for the IPO, revenues showed a 40 per cent rise at Rs 2,134 crore for the first quarter of 2004-05, as against Rs 1,526 crore for the first quarter of 2003-04.

Revenues and net profit for the quarter ended March 31, 2004 were Rs 2,037.5 crore and Rs 469.7 crore, respectively.

Mr S. Ramadorai, Chief Executive Officer, TCS, said the company has posted 27 per cent CAGR in revenues over the last four years. For fiscal 2004, the company's revenues stood at Rs 7,122.73 crore and net profit amounted to Rs 1,612.45 crore.

Addressing a press conference here today, Mr Ratan Tata, Chairman, Tata Sons, said the Rs 2,300 crore that will be transferred to Tata Sons from the IPO would be used for restructuring its balance sheet, promoting new companies and entering new business areas. The funds would also help in supporting existing businesses and increasing Tata Sons' shareholding in them over a period of time.

TCS would also look at listing itself at overseas exchanges at a future date, Mr Tata said.

Mr Ramadorai said the objective of the IPO is also to have a currency for acquisition for the company.The road shows would cover over 20 Indian cities and all the important investor locations abroad, including Singapore, London, New York and Boston, said merchant bankers. The IPO is opening on July 29 and the price band has been fixed at Rs 775-900.

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