India's TCS reports strong profits on US, Europe deals

July 9, 2015
Chief Executive Officer of Indian software firm Tata Consultancy Services Natarajan Chandrasekaran speaks in Mumbai on April 21,
Chief Executive Officer of Indian software firm Tata Consultancy Services Natarajan Chandrasekaran speaks in Mumbai on April 21, 2014

India's biggest IT outsourcing firm Tata Consultancy Services on Thursday reported better-than-expected quarterly profits on the back of growth in its key markets of the United States and Europe.

The Mumbai-based company, commonly known as TCS, said in a statement that for the three months to June 30 rose 12.9 percent to 57.09 billion rupees ($900.46 million), from 50.58 billion rupees for the same period last year.

Analysts surveyed by Bloomberg had expected TCS to announce profits of 55.1 billion-rupees after a sharp decline in the previous quarter due to higher wage costs.

"North America has rebounded strongly with five large deals and Europe gave two," TCS chief executive N. Chandrasekaran told reporters.

"From the point of view of deals, all the key core markets have done very strongly," he added, saying that the financial services, retail, and life sciences sectors had all been major contributors.

The company's revenues for the just-concluded quarter climbed a shade above 16 percent to 256.68 billion rupees ($4.05 billion) from 221.11 billion rupees a year ago.

The firm said it hired 5,279 new employees over the quarter to help handle increased business, taking the number of its staff across the world to 324,935.

TCS chief Chandrasekaran said the future outlook looked bright with new deals in the pipeline.

India has become a back office to the world as companies, especially in developed nations, have subcontracted work to firms such as TCS, taking advantage of the country's skilled English-speaking workforce.

The flagship industry has made India a top business destination by offering software development and information technology, engineering and design and other services.

Explore further: India's TCS yearly profits muted on FX volatility

Related Stories

India's TCS yearly profits muted on FX volatility

April 16, 2015

India's biggest outsourcing firm Tata Consultancy Services Thursday reported only a marginal rise in its earnings for the just-ended financial year citing volatile currency markets and a sluggish global economy.

India's TCS Q2 rises 13% on US, European deals

October 16, 2014

India's biggest outsourcing firm Tata Consultancy Services Thursday reported a 13.6 percent rise in quarterly net profit from a year ago on strong demand from clients in North America and Europe.

India's TCS Q1 surges 45% on North America deals

July 17, 2014

India's biggest outsourcing firm Tata Consultancy Services Thursday reported a 45 percent jump in quarterly net profit from a year ago, led by strong growth in business from North America.

India's TCS profits rise on US, European deals

January 15, 2015

India's biggest outsourcing firm Tata Consultancy Services on Thursday reported a 5.1 percent rise in quarterly net profits, driven by demand in its key markets of the United States and Europe.

India's Infosys gives muted earnings, stock falls

April 24, 2015

Indian software giant Infosys Technologies saw its shares dip nearly seven percent Friday after it reported a single digit rise in yearly revenues and also missed quarterly profit estimates.

Recommended for you

EPA adviser is promoting harmful ideas, scientists say

March 22, 2019

The Trump administration's reliance on industry-funded environmental specialists is again coming under fire, this time by researchers who say that Louis Anthony "Tony" Cox Jr., who leads a key Environmental Protection Agency ...

Coffee-based colloids for direct solar absorption

March 22, 2019

Solar energy is one of the most promising resources to help reduce fossil fuel consumption and mitigate greenhouse gas emissions to power a sustainable future. Devices presently in use to convert solar energy into thermal ...

0 comments

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.