India's Tata Consultancy's profit jumps 31.6 pct (Update)

January 16, 2014

Leading Indian software exporter Tata Consultancy Services reported a steep increase in quarterly profit on Friday, signaling that global spending on information technology is picking up.

Net income was $858 million for the quarter ending Dec. 31, up 31.6 percent from the same period the previous year.

The company's bottom line was also aided by the weakened Indian rupee, which lost more than 10 percent of its value last year. India's IT outsourcers get most of their payment in dollars and euros from overseas clients and pay most employees in rupees.

Tata Consultancy's CEO, N. Chandrasekaran, said the outlook in the coming year was even brighter as clients regain confidence to spend. The U.S. economy is showing more signs of recovery after several years since the 2008 global financial crisis.

"Based on initial discussions with our customers, we believe 2014 will be a stronger year for us than 2013 as customers execute their business plans in a relatively stable environment," Chandrasekaran said.

The company said it added four new clients with contracts worth $20 million or more and hired more than 14,000 employees in the December quarter.

Stocks in Tata Consultancy Services were nearly flat at 2,350.30 rupees ($38.25) per share in trading on the Bombay Stock Exchange ahead of the earnings report, which was released after the close of trading Thursday.

Explore further: India's TCS quarterly profit up 47 percent, beating forecast

Related Stories

India's TCS reports 22% rise in quarterly profit

April 17, 2013

India's biggest IT outsourcing firm, Tata Consultancy Services, on Wednesday reported a 22 percent jump in quarterly net profit, in line with market forecasts, led by stronger outsourcing orders.

Infosys profit down on visa investigation

October 11, 2013

Indian IT outsourcing giant Infosys posted a fall in quarterly profit Friday after setting aside funds for a visa-abuse investigation in the United States. Still, the company upgraded its revenue forecast for the year, pleasing ...

Recommended for you

The ethics of robot love

November 25, 2015

There was to have been a conference in Malaysia last week called Love and Sex with Robots but it was cancelled. Malaysian police branded it "illegal" and "ridiculous". "There is nothing scientific about sex with robots," ...

Glider pilots aim for the stratosphere

November 20, 2015

Talk about serendipity. Einar Enevoldson was strolling past a scientist's office in 1991 when he noticed a freshly printed image tacked to the wall. He was thunderstruck; it showed faint particles in the sky that proved something ...


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.