India's TCS quarterly profit up on outsourcing demand

Apr 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: IBM posts lower 1Q earnings amid hardware slump

add to favorites email to friend print save as pdf

Related Stories

India's TCS quarterly profit jumps 21 percent

Jul 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.

India software giant TCS profits up 30%

Jan 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.

India's TCS announces 29 pct quarterly profit jump

Oct 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.

Wipro posts 9.7 percent profit rise, below forecast

Oct 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.

Recommended for you

IBM posts lower 1Q earnings amid hardware slump

3 hours ago

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

New US-Spanish firm says targets rich mobile ad market

10 hours ago

Spanish telecoms firm Telefonica and US investment giant Blackstone launched a mobile telephone advertising venture on Wednesday, challenging internet giants such as Google and Facebook in a multi-billion-dollar ...

Technip, Heerema win third giant Angolan oil contract

13 hours ago

The ultra-deep Angolan offshore oil project called Kaombo generated the third huge contract in three days on Wednesday when French group Total picked two firms to carry out underwater engineering worth $3.5 billion.

User comments : 0

More news stories

Simplicity is key to co-operative robots

A way of making hundreds—or even thousands—of tiny robots cluster to carry out tasks without using any memory or processing power has been developed by engineers at the University of Sheffield, UK.

Microsoft CEO is driving data-culture mindset

(Phys.org) —Microsoft's future strategy: is all about leveraging data, from different sources, coming together using one cohesive Microsoft architecture. Microsoft CEO Satya Nadella on Tuesday, both in ...

IBM posts lower 1Q earnings amid hardware slump

IBM's first-quarter earnings fell and revenue came in below Wall Street's expectations amid an ongoing decline in its hardware business, one that was exasperated by weaker demand in China and emerging markets.

Down's chromosome cause genome-wide disruption

The extra copy of Chromosome 21 that causes Down's syndrome throws a spanner into the workings of all the other chromosomes as well, said a study published Wednesday that surprised its authors.