TCS logs 24% rise in Q1 net
Tata Consultancy Services, the country's largest information technology service provider, has reported better-than-expected growth in the quarter-ended June 2010. HT reports.india Updated: Jul 15, 2010 23:18 IST
Tata Consultancy Services (TCS), the country's largest information technology service provider, has reported better-than-expected growth in the quarter-ended June 2010.
The company said on Thursday that its profit and revenue rose by 24 per cent and 14 per cent respectively on the back of a strong growth from markets all across.
Revenues stood at Rs 8,217 crore and profit rose to Rs 1,906 crore even as TCS faced pressures on account of currency fluctuation, salary hike and a rise in attrition rate.
"We overcame all such pressures and witnessed a strong growth all across with a robust client addition across the industry and markets and witnessed a volume growth of 8.1 per cent in the quarter," said N. Chandrasekaran, CEO and managing director, TCS.
Adding 36 new clients during the quarter the company is in talks to add more, he said, adding TCS is seeing strong demand for outsourcing services and is chasing 15 large deals.
While the year-on-year growth was strong, the company also witnessed sequential growth of 6.2 per cent in revenues; however its profits dipped by 4.7 per cent over the quarter ended March 2010.
As Infosys reported on Wedesday, TCS too saw a sharp rise in attrition rate in the quarter, which it is addressing. Simultaneously it has decided to up its hiring target for 2010-11 from 30,000 to 40,000.
"The attrition rate went up from 11.8 per cent to 13.3 per cent, we would like to control it. Retention is key and in July we will be offering promotions," said Ajoy Mukherjee, head, global human resources, TCS.