India's TCS quarterly profit up on outsourcing demand

April 21, 2011

India's largest software exporter Tata Consultancy Services (TCS) on Thursday reported a 24 percent rise in quarterly profit from a year earlier, on robust demand for outsourcing.

Consolidated net profit rose to 24.02 billion rupees ($539 million) for the final quarter of the financial year ended March 2011, from 19.31 billion rupees in the same period a year ago, according to US accounting norms.

Revenues for the quarter rose 31 percent to 101.57 billion rupees, the company, which is part of the salt-to-steel Tata conglomerate, said in a statement.

The earnings met forecasts after analysts had predicted that TCS would post a net profit of 23.6 billion rupees, according to a survey by Dow Jones Newswires.

TCS shares however closed down 2.23 percent on profit-taking at 1,191.65 rupees at the , after they had run up in recent weeks.

Software rival Infosys showed a lower-than-expected 14 percent rise in profit at 18.2 billion rupees last week, as margins were hit due to rising staff costs.

"It has been an exceptional year. We are firing on all cylinders," N. Chandrasekaran, chief executive of TCS, told reporters.

TCS traditionally does not provide a , but Chandrasekaran said the "demand environment remained robust."

"We are chasing more deals now, compared to the same time last year," he added.

Growth was seen across all markets, the company said, particularly in the United States and emerging economies.

TCS and other outsourcing companies have made India a top business destination by offering software development and information technology, engineering and design, and business process outsourcing.

Analysts expect TCS to show strong growth in the new fiscal year, which started this month.

"The demand environment is strong and we expect TCS to close more deals," an analyst with Mumbai-base brokerage Edelweiss Securities said.

TCS said it had bagged a large multi-year deal from a Middle East banking group and also a large US-based retailer, without giving more details.

The company hired 11,700 employees in the quarter, with a total staff strength of 198,614 as of March 31.

For the full year, TCS logged a 30 percent rise in consolidated to 90.6 billion rupees.

Explore further: India's Tata Consultancy Services Q4 net profit up 4.6 pct

Related Stories

India's TCS announces 29 pct quarterly profit jump

October 16, 2009

India's biggest software services exporter, TCS, reported Friday that its quarterly net profit rose by 29 percent as the company sealed more deals in a better global business environment.

India's TCS quarterly profit jumps 21 percent

July 15, 2010

India's largest software exporter Tata Consultancy Services (TCS) reported Thursday its quarterly net profit jumped 21 percent, beating forecasts, as demand for outsourcing improved.

Wipro posts 9.7 percent profit rise, below forecast

October 22, 2010

India's third-biggest software firm Wipro reported Friday a lower-than-forecast 9.7 percent rise in quarterly net profit, blaming a higher rupee and wage costs for the disappointing earnings.

India software giant TCS profits up 30%

January 17, 2011

India's largest software exporter Tata Consultancy Services on Monday said profits rose nearly 30 percent in the third quarter, beating forecasts, as outsourcing orders strengthened.

Recommended for you

Customizing 3-D printing

September 3, 2015

The technology behind 3-D printing is growing more and more common, but the ability to create designs for it is not. Any but the simplest designs require expertise with computer-aided design (CAD) applications, and even for ...

Team develops targeted drug delivery to lung

September 2, 2015

Researchers from Columbia Engineering and Columbia University Medical Center (CUMC) have developed a new method that can target delivery of very small volumes of drugs into the lung. Their approach, in which micro-liters ...

Magnetic fields provide a new way to communicate wirelessly

September 1, 2015

Electrical engineers at the University of California, San Diego demonstrated a new wireless communication technique that works by sending magnetic signals through the human body. The new technology could offer a lower power ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.