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.
Showing posts with label TCS. Show all posts
Showing posts with label TCS. Show all posts
Tuesday, April 21, 2009
Friday, January 16, 2009
Effect of Nortel's bankruptcy on India INC.
Nortel filed for bankruptcy today in the U.S. and Canada. In its Chapter 11 petition in Delaware, U.S. operating unit Nortel Networks Inc. said it had assets of $11.6 billion and debt of $11.8 billion as of Sept. 30. The company had about $2.3 billion in cash on that date, according to a quarterly report to shareholders.
India companies have less exposure to this Canadian Giant.
The company which has maximum exposure is Sasken Comm. Nortel has arround 10% stake in Sasken. This is one company which can be affected maximum.
Infosys , TCS and Wipro also have less exposure to Nortel.
Nortel also provides equipments to BSNL, RCom and Bharti Airtel but this segment would not be affected as it is a profit making one.
Nortel has $2.3 billion of cash reserves and could have survived till 2010. But then too it filed for bankruptcy in USA, Canada and Europe.
PS - Indian companies don't have much exposure on Nortel. Some effect may be seen on Indian Companies. But Satyams effect will last longer !
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India companies have less exposure to this Canadian Giant.
The company which has maximum exposure is Sasken Comm. Nortel has arround 10% stake in Sasken. This is one company which can be affected maximum.
Infosys , TCS and Wipro also have less exposure to Nortel.
Nortel also provides equipments to BSNL, RCom and Bharti Airtel but this segment would not be affected as it is a profit making one.
Nortel has $2.3 billion of cash reserves and could have survived till 2010. But then too it filed for bankruptcy in USA, Canada and Europe.
PS - Indian companies don't have much exposure on Nortel. Some effect may be seen on Indian Companies. But Satyams effect will last longer !
Subscribe for free SMS updates - Click Here.
Subscribe for free Email updates - Click here.
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