MUMBAI: In a difficult environment beset with many challenges, Tata Consultancy Services (TCS) has reported a 5-per cent growth in net profit for 2008-09 at Rs. 5,256 crore on 23 per cent higher revenues of Rs. 27,813 crore.

The business volume was up a healthy 18 per cent and the operating profit was up 29 per cent at Rs. 6,577 crore.

For the fourth quarter ended March 2009, TCS has reported a net profit of Rs. 1,333 crore, up 7 per cent over the year ago figure but lower by 2.1 per cent over the preceding quarter. Total revenues during the quarter were up 18.5 per cent at Rs. 7,172 crore. The board of directors of the company has recommended a final dividend of Rs. 5 a share taking the total dividend to Rs. 14 a share. It has also recommended a bonus issue of one share for every share held (1:1). If approved by shareholders, this would be the second 1:1 bonus issue since the company went public five years ago.

Addressing the media here, TCS CEO and Managing Director S. Ramadorai said, “in an unpredictable operating environment, TCS delivered healthy topline growth of 23 per cent and crossed the $6 billion milestone in revenues. By focussing on operational efficiencies, collecting cash more efficiently and driving an enterprise-wide cost control programme, we have improved our profit margins and continue to generate significant cash flows. Even after the recent acquisition, we have cash of nearly Rs. 4,300 crore.”

“We have affected cost efficiencies without impacting growth drivers,” said S. Mahalingam, CFO and Executive Director, TCS. “We have exercised all levers including driving a higher revenue and controlling all expenses. Besides bottomline improvement, we have reduced the number of debtor days outstanding by 12 days in the last two quarters, reducing costs on travel, communications, rationalising infrastructure and optimising resources. We continue to generate strong cash flows,” he said.