IT services and outsourcing firm TCS reports second quarter growth

Tata Consultancy Services (TCS) has reported...

Tata Consultancy Services (TCS) has reported revenues of $1,794m (£1,164m)for the second quarter, up 6.4% on the first quarter and 21.2% up on the same period a year ago.

Operating profits at $487m were up 32.5% compared with a year ago and up 5.1% on the first quarter.

TCS also reported profit after tax at $403m, up 29.3% on the same period in 2009 and up 4.9% on the previous quarter, with earnings per share at 21 cents.

The IT services and outsourcing firm listed a net growth of 3,271 employees and the addition of 36 new clients as business highlights of the second quarter.

Growth was driven by "disciplined execution" and strong demand across markets and industry sectors, said N Chandrasekaran, chief executive at TCS.

The growth highlights the increasing demand among corporations for the full services strategy of TCS, he said.

S Mahalingam, chief financial officer, said disciplined pricing has helped mitigate the impact of wage and currency headwinds, and post a strong margin performance.

"Our investment in building an extensive front-office presence in new markets is helping support and sustain higher growth," he said.

Key business successes for the quarter include a development project in supply chain and merchandising from a large food retailer in the UK and a multi-year contract with a Europe-based global mobile service provider, TCS said.

TCS said it had completed several projects in the quarter, including a transformation initiative to help a European insurance firm introduce new products faster and systems to comply with Basel II for a pan-European bank.

During the quarter, TCS filed 26 patent applications and was granted one in the area of object oriented models.



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