Tata Consultancy Services profit up 4 percent amid soft Q3

Tata Consultancy Services has reported that strong growth in industries has contributed to an increase in profit, revenue, and income for the third quarter of the 2015 financial year.

Tata Consultancy Services (TCS) has reported that its operating profit was up 3.9 percent to $1.06 million during the third quarter of the 2015 financial year.

The IT services, consulting, and business solutions firm also reported that revenue increased 14.3 percent year on year to $3.93 billion. At the same time, net income for the same period was up 4.4 percent year on year, at $873 million.

TCS has attributed the third-quarter growth to being driven by strong growth in industries such as telecom, hi tech, and life sciences. The company said it achieved growth across Europe, North America, and emerging markets in Latin America, the Middle East, and Africa. Europe led the growth, which was mainly driven by investments the company made in the market.

TCS CEO and managing director N Chandrasekaran said the results are evidence of the company's ability to maintain momentum in a traditionally weak quarter for the IT industry.

"Based on our progress this quarter, we are well on our way to post industry-leading growth for FY15. In areas like digital, simplification, and governance, we continue to partner closely with customers to help them prepare their businesses to succeed in an economy where the default is digital," he said.

Chandrasekaran added that the company's diversified industry portfolio, particularly in global consulting, asset leveraged solutions, infrastructure services, and assurance services, also helped the company overcome soft seasonal demand in some sectors.

During the quarter, TCS won a number of key partnerships, including one with a British mutual financial institution to manage its application portfolio, and another with a beverages company to manage and build a private cloud for its global infrastructure operations.