TCS adds clients to beat profit forecast
By Aradhana Aravindan and Harichandan Arakali
MUMBAI/BANGALORE (Reuters) - Tata Consultancy Services Ltd, India's No.1 software services exporter, topped expectations with a 23 percent rise in quarterly profit and reiterated it should beat a closely watched industry growth forecast.
India's $100 billion IT services sector is under pressure to sustain growth as clients in key markets, including Europe and the United States, have been keeping a tight grip on tech spending because of global economic uncertainty.
"We are finishing the calendar year very well and look very confident going into the future in Q4 and FY14," chief executive N Chandrasekaran told reporters on Monday, adding he felt positive about clients' technology budgets.
The number of clients contributing $100 million or more annual revenue rose to 16 in the quarter, from 14, TCS said, adding it also won 31 new clients in the period.
The company, which does not give detailed revenue forecasts, said it still expected to beat an industry export revenue growth estimate made by the National Association of Software and Service Companies (NASSCOM).
In November, NASSCOM said the sector was likely to meet the lower end of its revenue growth outlook of 11-14 percent for the fiscal year to end-March.
TCS said net profit for the three months to December rose to 35.5 billion rupees ($652 million), compared with a forecast for 32.4 billion in a Thomson Reuters poll.
BRIGHTER OUTLOOK Continued...