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.

Net profit for , widely known as TCS, in the second quarter ending September increased to 16.24 billion rupees (351 million dollars) from 12.62 billion rupees a year earlier.

Revenues rose three percent to 74.3 billion rupees, according to US accounting norms, the company said in a statement.

TCS shares rose 14.75 rupees, or 2.63 percent, to 599 rupees on the ahead of the earnings announcement, which beat market expectations.

"This was a very satisfying performance as we saw strong volume growth," said N. Chandrasekaran, TCS' new chief executive, who took over from S. Ramadorai earlier this month. "We are seeing an improvement in market conditions."

India's outsourcing sector was hurt by the global that hit spending by customers.

But TCS, part of India's giant tea-to-telecommunications Tata Group, added 300 employees during the three months.

Chandrasekaran said the company would monitor foreign exchange movements against the backdrop of a sharp rise in the rupee.

"We are monitoring our forex exposure and making adjustments accordingly," he said.

The Indian currency is at a near one-year high against the dollar at 46.2 to the dollar, data showed Friday.

Appreciation of the rupee against the dollar hits India's outsourcing industry hard.

Work farmed out to Indian companies, which account for around 50 percent of the world's outsourcing market, includes answering calls by bank customers, processing credit-card applications and insurance claims and equity analysis.

TCS counts such companies as General Electric and General Motors among its clients.

(c) 2009 AFP

Explore further: Sony forecasts $2B loss as smartphones lag (Update)

add to favorites email to friend print save as pdf

Related Stories

India's Infosys posts profit dip on slowdown

Apr 15, 2009

India's Infosys Technologies said Wednesday its consolidated net profit for the fiscal fourth-quarter rose 29 percent from a year earlier, but fell sequentially due to the global slowdown.

Recommended for you

Sony forecasts $2B loss as smartphones lag (Update)

4 hours ago

Sony expects its annual loss to swell to $2 billion and has canceled dividends for the first time in more than half a century after writing down the value of its troubled smartphone business.

Alibaba post-IPO structure gives insiders control

4 hours ago

Control over Alibaba Group will stay in the hands of founder Jack Ma and other company veterans after the Chinese e-commerce giant goes public on the New York Stock Exchange in a record busting share sale.

User comments : 0