Tata Consultancy Q3 profit up 23 percent, above expectations

Tata Consultancy Q3 profit up 23 percent, above expectations

Summary: Indian software services giant posts a 23 percent rise in net profit at US$651 million for quarter ended Dec. on the back of a "well rounded performance", fueling hopes of wider tech spending pickup.

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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.

Tata Consultancy Services posts better than expected Q3 results
Tata Consultancy Services posts better than expected Q3 results. (source: TCS presentation slides)

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.

 

Topics: Outsourcing, Software, India

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Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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