Indian outsourcers TCS and HCL see profits boom

Indian outsourcing companies Tata Consultancy Services (TCS) and HCL both saw profits grow by more than 20% in their quarterly results.

Mumbai-based TCS saw operating profits grow by 24.7% year-on-year to $756m (£492m) in its third quarter, and sales increase by 20.6% to $2.59bn compared with the same period in 2011.

Delhi-based HCL posted profit growth of 23.7% for its second quarter to $337.3m, and revenues increased 18.3% to $1.02bn, compared with the same quarter last year.

Both companies reported strong growth in Europe in their results.

TCS's CEO, N Chandrasekaran, said: “While technology budgets are still being set for the next fiscal year, there is little doubt that technology is a key resource to help global businesses optimise their operations and fuel growth in the current economic climate. In this environment TCS is partnering with clients to achieve their objectives using our integrated portfolio of solutions.”

TCS said it had applied for 650 patents, of which 70 had been granted by the end of 2011. The company also grew its global workforce by 18,907 during its third quarter to 226,751.

Shiv Nadar, chairman at HCL, said: “As the uncertainty around the economic environment continues, the world will demand companies to be deeply conscious of the accompanying social sensitivities. As economies contract and the job environment remains challenged, we at HCL are committed to creating local jobs, contributing to the welfare of local communities and pushing the pedal on enterprise philanthropy in continuing cognizance of our social responsibility.”