Tata Consultancy Services first Indian IT firm to cross $10B revenue

Indian IT giant posts better than expected fourth-quarter results with 23 percent profit growth, driven by stronger sales, becoming first local IT company to cross US$10 billion mark in annual revenue.
Written by Ryan Huang, Contributor

Tata Consultancy Services (TCS) has posted a 23 percent jump in net profit to 29.3 billion rupees (US$558 million) for its fourth quarter, ended Mar. 31, driven by higher non-operating income and increased demand for outsourcing services.

In its financial statement (International Financial Reporting Standards) released Monday, the Indian IT giant announced that in the three months of 2012, its revenue rose 30.5 percent to 132.6 billion rupees (US$2.5 billion).

A Reuters poll of analysts had forecast a net profit of 29 billion rupees (US$549.9 million) for the company, which customers include Citigroup and BP.

Posting an annual revenue of US$10.17 billion, TCS noted that it had become the first Indian IT company to cross the US$10 billion-dollar milestone. 

In the statement, N. Chandrasekaran, CEO and MD of TCS, said: "We have carried our strong momentum through the fourth quarter to close out a year of strong growth. We have kept our focus on profitability and consolidated our market leadership.

"With our customer-centric approach, strong solution set and investments in game-changing technologies like mobility, big data and cloud, we remain well-positioned to help our customers transform and drive growth in their businesses," Chandrasekaran added.

The company said it added 42 customers last quarter, sealing orders from a U.S.-based insurance company and an international automotive retailer, among others.

S. Mahalingam, CFO of TCS, in the press release said: "We have grown very well during 2011-12 and also been able to exit the year at the right margin levels, despite the marked increase in volatility during the past 12 months."

The Indian services provider added 11,832 employees during the fourth quarter, for a total of 238,583, according to the statement. It plans to hire as many as 50,000 graduates in the current financial year.

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