Dispelling concerns about the robustness of India's IT sector, Tata Consultancy Services Ltd, India's top software services provider, matched estimates with a 25% year-on-year growth in net profit to Rs. 3,616 crore and 24% growth in revenues to Rs. 16,430 crore during the fourth quarter.
Large orders from multinationals including Nokia and BNP Paribas aided profit growth during the fourth quarter, as the company put out a robust forecast for 2013-14.
The profit figures were roughly in line with an average earnings estimate of Rs. 3,620 crore.
For the full year 2013-14, TCS registered a 34% growth in net profit at Rs. 13,917 crore and 29% in revenue at Rs. 62,989 crore.
Disappointing results and forecast by its closest rival Infosys last week had raised doubts about the growth momentum of the Indian IT industry.TCS added 52 new clients during the January-March quarter.
"Our deal pipeline is strong. We see good momentum as deal closures are happening," said N Chandrasekharan, chief executive officer and managing director, TCS.
"This year is going to be better than fiscal year 2012-13. We will do better than Nasscom forecast."
Nasscom has projected 12-14% growth for 2013-14.
On the flip side, TCS has decided to reduce hiring in the current fiscal year.
The company will hire 45,000 people in 2013-14, significantly lower than 69,728, its gross hiring in the just-ended financial year, said Ajoy Mukherjee, executive vice-president, TCS.
"Employee utilisation at 82% (excluding trainees) was strong, said Gautam Sinha Roy, vice-president, Oswal Securities.
The company's share price closed down 1.7% at Rs. 1,459 on the Bombay Stock Exchange (BSE).