TCS Q1 net profit vaults 37 per cent to Rs4,077 crore

Tata Consultancy Services Ltd (TCS) India's top software services company, has reported fiscal first quarter net profit of Rs3,318 crore, a 37.4 per cent increase year-on-year and a 14.6 per cent rise form the previous quarter ended 31 March 2012.

The company's operating profits for the quarter grew 44.3 per cent to Rs4,077 crore on revenues of Rs14,869 crore, which again was up 37.7 per cent year-on-year and up 12.1 per cent from the previous quarter.

"We have seen strong, secular growth across all our service lines and industry segments driven by robust volumes from key markets like North America, Europe and the UK. We have also absorbed impact of wage hikes and maintained our profitability in a volatile setting," chief executive officer and managing director N Chandrasekaran said.

"Looking ahead, TCS continues to see good demand from global corporations as they successfully navigate an increasingly complex environment. Our investments in new technologies and platforms are bearing fruit with increasing market traction and we are confident of playing a pivotal role in our customers' future business evolution," he added.

"Our ability to closely monitor and maintain our operating expenses to support higher revenues is helping us maintain healthy margins. This ensures that we are able to continuously make investments needed in technology, capabilities and infrastructure to fuel growth over the long-term," said S Mahalingam, chief financial officer and executive director of TCS.

"The unprecedented volatility among major currencies and the Indian rupee will continue to be a challenge in the short term and we are taking the steps to mitigate any risks arising from this scenario," he added.