India's Tata Consultancy Services has beaten market forecasts with its second quarter earnings, and also outperformed its industry rivals.
For the three months ended September, the software services provider posted a 44 percent rise in net profit at 35.1 billion rupees (US$652 million) in a results released Friday. This was higher than the 33.8 billion rupees forecast according to a Bloomberg poll of 36 analysts. Revenue increased 34 percent to 156 billion rupees from a year earlier to US$2.9 billion.
The company noted growth in the quarter was "very broad-based" and seen across all industry segments led by manufacturing, retail, telecom, banking and financial services. It added all markets grew led by the U.K. and Europe, while growth markets like India, Asia-Pacific, Latin America and the Middle East performed well.
"There have been at least 11 new deal signings and these deals have come across industries and across markets,” CEO N Chandrasekaran told reporters on Friday, according to a Bloomberg report. "If you look at our engagements that we have executed and also in pipeline our investments in digital whether it is social media, big data, mobility, analytics and cloud are gaining tremendous traction."
Last Thursday, fourth ranked HCL Technologies had also beat market expectations with its results with a 78 percent jump in net profit to 8.85 billion rupees (US$167 million). This was due to larger contract wins and margins.
In contrast, the country's number two provider, Infosys, gave a muted outlook the week before in its results announcement, citing the continued global economic uncertainty.