TCS results offer boost to Indian IT sector

TCS's results come as a much need fillip for the Indian IT sector

Indian IT services provider Tata Consultancy Services (TCS) has reported a 24 per cent year-on-year increase in revenue for its third quarter - but the increasingly challenging market conditions meant that profit was up just 2.7 per cent.

TCS made 72.8bn rupees (£1bn) in sales and 13.6bn rupees (£191m) net income. The company signed up 41 new customers during the quarter and recruited nearly 12,000 staff.

Chief executive S. Ramadorai said that TCS has continued to deliver even in a difficult environment.

"In tough market conditions, TCS continues to perform in a stellar fashion, driving revenue growth through our diversified market presence and boosting our operational profitability by conserving costs and creating efficiencies," he said.

TCS was also quick to distance itself from the scandal surrounding rival Satyam, whose chairman resigned after admitting to inflating company profits by 50.4bn rupees (£682m) over the past seven years. The whole Indian IT industry has come under greater scrutiny since the fraud was revealed.

"With our disciplined and professional approach to management, we have always been a role model for corporate governance highlighted by the company's transparency, ethics and integrity - values that flow from the Tata Group's Code of Conduct," said Ramadorai.

TCS's results come as a further boost to the Indian sector after Infosys reported earlier this week that third-quarter revenue was up 35 per cent to 57.86bn rupees (£805m) and profit after tax grew 33 per cent to 16.4bn rupees (£228m).