TCS net profit increases 4.6% in FY 2009; Board recommends 1:1 bonus share issue

Tata Consultancy ServicesThe quarterly profit of the autos, commodities and services businesses-inclusive Tata Group firm, TCS - Tata Consultancy Services - has increased by 4.6 percent. Compared to the Rs 4,508.76 crore after-tax net profit reported during earlier fiscal, the figures for the year ending March 31, 2009 stood at Rs 4,696.21 crore.

The year-on-year total income increased from Rs 18,979.67 crore in the last fiscal year, to Rs 21,947.76 crore this fiscal.

The Tata Group as a whole reported an increase in net profit to Rs 5,256.42 crore for the fiscal year 2009, as against the year-before figures of Rs 5,026.02 crore; while the total income during the same period rose to Rs 27,385.89 crore from Rs 23,347.81 crore.

Saying that the TCS growth figures were quite satisfactory, particularly amid the gloomy economic scenario, S Ramadorai - the company's CEO and MD - remarked: "In an unpredictable operating environment, TCS delivered healthy topline growth of 23 per cent."

Ramadorai added that TCS had managed to generate noteworthy cash-flows; and that despite the recent cash acquisition, the firm had almost Rs 4,300 crore in cash. Ramadorai stated that over and above a total dividend of Rs 14 a share, "the Board of Directors have recommended a 1:1 bonus share issue subject to approval by the shareholders," at the approaching Annual General Meeting of the Company!