India's largest IT services provider, Tata Consultancy Services (TCS),now a $6 billion company, registered a consolidated net profit (Indian GAAP) of Rs 1,333 crore for the fourth quarter ended March 31, 2008. While its net profit was up only 7 per cent up as compared to the same period last financial year (YoY), sequentially (QoQ), the growth declined by 2.1 per cent. The company's revenue at Rs 7,172 crore was up 18.5 per cent YoY but declined 1.5 per cent QoQ. TCS added 36 new clients (41 in the trailing quarter) in the current quarter, and closed 7 large deals. The company has also announced a bonus of 1 share for every share(1:1) held by the investors.
The top management said that there wont be any salary increments or promotions definitely in the first half of the 2009-10 fiscal year. Also, the board members said that they are not looking at layoffs as a cost-cutting measures. The current variable pay maybe restructured in terms of the ratio that was paid each month to the combined variable pay at the end of each quarter. The deal pipelines seemed to be on track and there are some semblance of recovery in US. There are certain pricing pressures in the environment with about a negative 44 bps in Q4 2008-09.
