TCS net up 34 per cent, confirms IT rebound as US, EU lead recovery | business | Hindustan Times
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TCS net up 34 per cent, confirms IT rebound as US, EU lead recovery

business Updated: Jan 15, 2010 21:41 IST
HT Correspondent

Tata Consultancy Services (TCS), the country’s largest software exporter, reported a 34 per cent year-on-year rise in consolidated net profit for the third quarter-ending December 31 on the back of strong rebound in outsourcing orders.

That confirmed a rebound in the IT sector after No. 2 player Infosys reported an improved performance and a solid outlook last week.

The net profit during the quarter stood at Rs 1,824 crore, and revenues grew to Rs 7,649 crore—up 5.1 per cent from last year, on the back of a strong recovery.

“TCS once again posted high growth in a difficult year," said TCS chief executive N Chandrasekaran in a statement.

The company plans to hire 8,300 more employees and has already made 5,500 campus offers to fresh recruits.

For the quarter, TCS was awarded a multi-million dollar, multi-year contract for a US-based pharmaceutical firm, without disclosing more details.

Chandrasekaran said demand recovery was being seen across the financial services, banking and telecom sectors.

The company’s shares rose 1.23 percent to 791.8 at the Mumbai stock exchange, ahead of the results. TCS does not give revenue outlook.

While US continues to lead demand recovery companies in UK and Europe are increasingly begun to invest fro the upturn. “Of the ten significant deals signed by us in the third quarter seven have been in North America,” Chandrasekaran said.

“TCS results were above estimates. A broad- based growth is also a positive with the large demand constituents of bank, financial services and insurance segment and US growing well in the quarter,” said Dipen Shah, Senior Vice President, Private Client Group research, Kotak Securities.

“Our investments ahead-of-time in emerging markets, multiple industries and client relationships is reflected in our exemplary performance, which validates the strength of our business model and highlights our differentiated strategy,” Chandrasekaran said