It seems TCS has not felt the pinch of recession as it is offering bonus issue during recession in a ratio of 1:1.
This is the second bonus issue by the company since it went public five years ago. It had announced a similar bonus in 2006.
Bearing the brunt of global slowdown, TCS battled price re-negotiations and drying up of new software development projects, but maintained operating profit margins by moving thousands of employees from expensive onsite locations to offshore sites, bringing down travel expenditure and other expenses. The company said more than 40-45% of its customers have been reporting decline in revenues and more than 50% were reporting decline in profits.
The company’s net profit grew 4.6% year- on-year to Rs 1,314 crore, while revenues grew 17.7% to Rs 7,171.8 crore in the fourth quarter of FY09. However, for the first time since it went public in 2004, TCS has recorded a quarter-on-quarter decline of 1.4% in revenue. via
In my view this is a good step by a Tata Group , providing relief to share holders during bad times. TATA group has always been ahead in a social cause.
2 comments:
This is just a management gimmick to keep shareholders happy at the expense of thousands of TCS associates.
Internally its not doing great. All promotions are on hold since last 2 years. No hike in salaray infact cut down.
I agree with @Abhay till some extent.
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