The Mint Report for 17 October 2011

The Mint Report for 17 October 2011

India’s biggest IT firm, TCS reported second quarter earnings that were in line with most estimates on Monday. Net profit for the period grew 6.1% to Rs2,301 crore. And revenue shot up 25% to Rs11,633 crore.

CEO N. Chandrasekaran said the company had added 35 new clients during the period and that he expected strong growth from the firm’s full service segment. TCS posted its results after market hours. Shares of the firm dropped 1.3% on the BSE to 1,119.80.

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Also in earnings, mortgage lender HDFC has met street expectations with its second quarter earnings. Profit rose 20.2% to Rs971 crore. And income from operations jumped up 40% to 4,077 crore. HDFC said that while rising interest rates had hurt demand, approvals for new loans had gone up 18% over the first two quarters. But the company’s margins have been hurt. They fell to 2.29% from 2.34%. Shares of the firm climbed 0.95% on the BSE to 672.65.

Also in corporate, Maruti Suzuki’s board is trying to better understand the dispute with workers that has wreaked havoc on its output. It has asked the company for a report on the unrest. It will then discuss the report and its implications on 29 October. A sit-in by worker brought work to a screeching halt at Maruti’s plant in Manesar near Delhi. While some work has resumed, Maruti and parent firm Suzuki face widespread worker unrest at facilities across the area.