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TCS Q2 Profit Up 14.7%, To Pay Second Interim

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Tata Consultancy Services (TCS), India's largest software services exporter, reported a 14.7-per cent rise in quarterly net profit, marginally below estimates as uncertainty in the global economy weighed on new outsourcing orders.

TCS, a unit of the salt-to-steel conglomerate Tata Group, said on Monday net profit for the fiscal second quarter that ended September rose to 24.39 billion rupees ($498 million) in accordance with international financial reporting standards.

This compares with a Reuters poll of 24.77 billion rupees in net profit for the company, whose major clients include Citigroup , General Electric, British Airways, Sony Corp and British insurer Aviva .

Shares in TCS, valued at about $45 billion, closed down 1.2 per cent at 1,120.25 rupees ahead of the result announcement in a Mumbai market that closed 0.3 per cent lower.

Infosys, India's No.2 software services exporter, last week reported a 9.7-percent rise in second-quarter profit, roughly in line with street estimates, easing investor worries of a sharp slowdown in the outsourcing sector.

TCS saw a gross addition of 20,349 employees during the quarter, while net additions amounted to 12,580.

The company added 35 clients in second quarter.

Board Declares Second Interim Dividend
TCS informed BSE that the Board of Directors at its meeting held on October 17, 2011, inter alia, have declared a second interim dividend of Rs 3 per equity share of Re 1 each.

Further the company has informed that, the second interim Dividend will be paid to the equity shareholders of the company on November 11, 2011.