Tata Consultancy Services reports 16.8 percent jump in quarterly net profit

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By Agence France-Presse | Updated: 19 July 2013 10:20 IST
India's biggest IT outsourcing firm, Tata Consultancy Services, on Thursday reported a 16.8 percent jump in quarterly net profit, beating market forecasts.

The company, which is popularly known as TCS and is part of the steel-to-tea Tata conglomerate, said net profit was 38.31 billion rupees ($641 million) for the first quarter to June, up from 32.8 billion rupees a year earlier.

Analysts had forecast a profit of about 37.6 billion rupees.

"We delivered yet another stellar quarter, driven by the highest volume growth over the last seven quarters," chief executive N. Chandrasekaran said in a statement.

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TCS counts blue-chip companies such as British Airways, BP, Citigroup and Microsoft among its main clients.

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In the three months to June, TCS completed its acquisition of French IT services firm Alti SA for 75 million euros($98 million).

The company said it also hired 1,350 people in the quarter and signed at least nine large deals.

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TCS's rival Infosys last week reported a nearly four percent rise in quarterly net profit and kept its market forecast intact.

Infosys said net profit rose to 23.74 billion rupees ($396 million) for the first quarter to June, from 22.89 billion rupees a year earlier.

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TCS and Infosys lead India's flagship IT outsourcing industry, which carries out a wide range of jobs for Western firms such as answering calls from bank customers, processing insurance claims and developing software.

India, with its large English-speaking workforce, accounts for at least 50 percent of the global outsourcing market.

 

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Further reading: TCS, Tata Consultancy Services
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