India's largest IT firm TCS Q3 profit up 23%

Net profit was 28.87 billion rupees ($566 million) for the three months to December, up from 23.46 billion rupees a year earlier, according to international accounting norms.

Revenue for the quarter rose 37 percent to 137.04 billion rupees, the company said in a statement.

"Our execution rigour on the ground enabled TCS to post a strong financial performance," TCS chief executive N. Chandrasekaran said.

Chandrasekaran said demand recovery was being seen across the banking, retail and manufacturing sectors.

He said that clients have started to finalise technology budgets for the next financial year.

"Early indications are that in some cases budgets have increased, while in other cases they are flat."

Chandrasekaran said projects which involve discretionary spending from clients may see delays, due to slower decision-making.

TCS does not offer a revenue outlook.

The earnings come after rival Infosys last week cut its revenue outlook in dollar terms for the fiscal year to March, while posting a 33 percent rise in net profit.

TCS showed sequential revenue growth across all regions in which it operates, led by 18.1 percent in Europe and 13.3 percent in the United States, the statement said.

During the quarter, TCS added a net 11,981 employees and 40 new clients.

TCS said it was awarded a multi-million dollar, multi-year contract for a top measurement devices firm, without disclosing more details, in the same period.

TCS has also become a strategic partner with two US-based retail firms for maintenance services.

The figures came as India's fourth-biggest software services firm, HCL, Tuesday posted a 43 percent jump in quarterly net profit, beating forecasts, thanks to stronger outsourcing demand and a weak rupee.

New Delhi-based HCL Technologies said net profit for the three months to December jumped to 5.73 billion rupees ($112 million) from 4.0 billion rupees a year earlier, according to US accounting standards.

(c) 2012 AFP