India's Tata Consultancy's profit jumps 31.6 pct (Update)January 16th, 2014 in Technology / Business
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.
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"India's Tata Consultancy's profit jumps 31.6 pct (Update)." January 16th, 2014. http://phys.org/news/2014-01-india-tata-profit-pct.html