Shrugging off concerns over an economic recovery in its main US market, Tata Consultancy Services (TCS) showed a thumping quarterly profit performance on Thursday, beating market expectations with a 32 per cent year-on-year growth in the July-September net profit at R2,169 crore in what it said was a “milestone quarter”.
Revenues rose by 25 per cent to R9,286 crore.
The performance outshone close rival Infosys that reported a 13.2 per cent rise in net profit and 24.4 per cent rise in revenues for the same period.
The company raised its hiring outlook for the full fiscal year to 50,000 from the earlier projection of 40,000.
“It has been a quarter of superior performance across the board, driven by volume growth of over 11 per cent. In uncertain economic conditions, our results are a milestone on the path to strong demand recovery,” said N Chandrasekaran, CEO, who described the demand environment as “robust.”
But headded that a stronger rupee could also erode industry competitiveness. A stronger rupee fetches less money for dollar earnings.
TCS said all industry-based business divisions showed double-digit growth during the quarter as it added 30 new clients. During the quarter TCS added 19,293 people, taking its total headcount to 1,74,417 at the end of September.