Indian IT firm announces better than predicted results

Published:  17 Jul at 10 AM

The largest IT outsourcing firm in India has announced a rise in profits for the first quarter of the year. Tata Consultancy Services said an increase in demand for outsourcing services had led to a 38 per cent rise in profits for the three months. A weak rupee has also helped.

This is because foreign firms are getting the services and goods for a more competitive price. Revenues are also increased when the foreign earnings make it back into India.

For the three months ending in June TCS made a 32.8 billion rupee net profit which was an increase of 23.8 billion rupees on the period a year earlier. Revenue hit 148.7 billion rupees which was a leap of 37.7 per cent.

The TCS results were better than analysts expected. Main Indian rival Infosys reported earnings which were less than expected by experts. The company has also been forced to cut its sales forecast. TCS and Infosys are India’s leading outsourcers for IT services which include software development, processing insurance claims and answering phones in call centres.

Chief executive of TCS, N Chandrasekaran, said volumes had been robust in important territories including Europe, North America and Latin America. He added that the firm was benefitting from a complex environment which is driving demand from global corporations.