India's TCS shares surge on upbeat earnings

Apr 24, 2012

Shares in India's biggest outsourcing firm Tata Consultancy Services jumped more than 10 percent in early trade on Tuesday after it reported better-than-expected quarterly earnings.

The firm rose as much as 10.18 percent to a day's high of 1,167.8 rupees at the as analysts gave a positive outlook for the firm, which is part of the steel-to-tea Tata conglomerate.

The stock later eased slightly to 1,158.8, still up 9.4 percent.

TCS reported late Monday that net profit jumped 23 percent to 29.32 billion rupees ($558 million) in the three months to March as US and European customers boosted orders.

The results came after rival Infosys disappointed investors by warning of a tough year ahead amid global economic uncertainty and growing anti-outsourcing sentiment in the United States.

India's flagship outsourcing sector derives half of its revenues from the United States and is engaged in an increasingly fierce struggle for business with global rivals such as IBM and Accenture.

"TCS's growth rate is higher than its peers, it has been able to tap the right markets and sectors," Ankita Somani, IT analyst with Mumbai's Angel Broking, told AFP.

The National Association of Software and Services Companies (NASSCOM) said exports in the sector are expected to increase by up to 14 percent to $78 billion in the fiscal year that began April 1.

Explore further: China Telecom says profit down 9 percent due to tax change

Related Stories

India's TCS quarterly profit leaps 23%

Apr 23, 2012

India's biggest outsourcing firm TCS reported Monday net profit jumped 23 percent in the three months to March, beating market forecasts as US and European customers boosted orders.

India's TCS announces 14.7% Q2 profit jump

Oct 17, 2011

India's biggest software exporter, TCS, said Monday its quarterly net profit rose 14.7 percent, marginally below estimates, as concerns over global uncertainty offset improved outsourcing demand.

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's IT giant TCS slumps despite profit boost

Jan 18, 2012

Shares in India's biggest outsourcing firm TCS slid as much as 5.1 percent Wednesday amid investor concern about the outlook for a sector dependent on demand from crises-hit Europe and the United States.

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.

Recommended for you

Yahoo unveils new online video series

5 hours ago

US Internet giant Yahoo said it was expanding its online offerings, unveiling 18 new video series with which it hopes to attract a larger audience and advertisers.

Apple's Mac is selling strong, iPad not so much

6 hours ago

Apple's iPhone was again the company's star in the first three months of the year. The tech giant sold 61 million iPhones, or 40 percent more than in the same period a year ago. That represented about two-thirds ...

User comments : 0

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.