Indian IT Firm TCS Reports Higher Profits

As outsourcing orders climbed, India’s IT software services giant, Tata Consultancy Services, reported higher revenues and income for the third quarter (3Q), far greater than those projected by analysts. Based on US GAAP for the quarter ended December 31, 2010, TCS reported revenue of $2.14 billion, up 7 percent quarter-over-quarter (Q-o-Q) and 31 percent year-over-year (Y-o-Y). Likewise, India’s IT outsourcing giant reported net income of $517 million for the third quarter, up 14 percent Q-o-Q and 35 percent Y-o-Y.

In a statement, TCS CEO and Managing Director, N Chandrasekaran, said, "Sharp (News - Alert) focus on our strategy with rigorous execution discipline has helped us capture volumes, defend our margins and deliver another stellar quarter. Demand environment continues to be strong and we are focused on helping our customers become more efficient and plan for growth." He added, "With clients' focused on transforming their businesses and becoming globally competitive in this dynamic macro environment, we are optimistic that demand for our solutions will continue to be strong going forward."

Similarly, in another statement, commented S. Mahalingam, CFO at TCS, "Our ongoing performance has been the result of a sustained effort from all operating teams to focus on growth with profitability. As we grow in size, we will have more levers at hand to combat headwinds and maintain our profitability while continuing to grow." "We continue to live with currency volatility and have leveraged our cost management ability to deliver on margins," noted Mahalingam.

According to TCS, this growth was led by the developed markets like the United States and Europe with strong contributions from Asia Pacific, Middle East and Africa. In terms of services, full services capabilities continue to be leveraged by customers with our new service lines like Assurance and Infrastructure Services growing at a fast clip, said TCS.

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TCS said that it’s portfolio of financial products under the umbrella brand of TCS BANCS continued to exhibit strong double digit growth. The company won six engagements in core banking, capital markets and insurance segments. In addition four product installations went live during the quarter, including the multi-country core banking roll-out for a large European-HQ global bank.

At the end of 3Q, the total employee strength of the company was 186,914. Non Indian nationals formed 6.8 percent of the total employee base and 31 percent were women.

TCS added nearly 12,497 employees and 35 new clients in this quarter.