Tata Consultancy Q3 profit up 23 percent, above expectations

Tata Consultancy Services (TCS) has booked better than expected results for its third quarter, fuelling hopes of a wider pick up in tech spending.

India's largest software services exporter announced Tuesday it had booked a 23 percent rise in net profit at INR 35.5 billion (US$651 million). This beat Bloomberg analyst estimates of INR 34 billion. This was on the back of a 22 percent rise in revenue at INR 160.7 billion (US$2.9 billion).

N Chandrasekaran, CEO and managing director of TCS, said the quarter was lifted by a "well rounded performance" which drove a higher quality of revenue and increased profitability.

"We believe that clients are going to invest in making their operations ‘digital-ready’ in 2013 and drive business growth," Chandrasekaran added.

TCS said growth was broad based, and led by the United States and United Kingdom in mature markets, which growth markets were led by Latin America followed by India.

It added amongst industries, growth was led by banking, financial services and insurance (BFSI), energy and Utilities, manufacturing and retail and distribution.

The company's results comes just a week after rival Infosys similarly posted a better than expected quarterly performance ended December. Infosys had also upgraded its full year revenue forecast, after booking new clients signalling a possible pick up in IT spending by customers.