TCS said its third quarter revenue increased 32.5 percent to Rs 21,294 crore, while profit rose 49.6 percent to Rs 5,314 crore.
Strong international demand for IT services and discipline in execution has helped TCS to maintain the revenue and profit growth.
TCS diversified market presence and services portfolio has helped to overcome seasonal weakness and soft demand in the Indian market.
In the third quarter, TCS said the number of $50 million+ clients increased by two, while the number of $20 million+ clients increased by four.
TCS said 2014 will be a better year than 2013.
TCS Chief Executive Officer N Chandrasekaran said: “With digital technologies rapidly changing the way an enterprise operates in multiple dimensions, our continuous investments positions us well to help customers re-imagine their business.”
Dipen Shah, head – Private Client Group Research, Kotak Securities, said: “TCS results are in line with expectations. The 2.9 percent volume growth in international business is encouraging.”
“We believe that, consistent high volume growth being reported by TCS, reflects effective demand generation initiatives and efficient execution. The increase in employee addition target for FY14 as well as the likelihood of revising higher the FY15 employee targets reflects the extent of revenue visibility the company has,” Shah added.
TCS growth drivers
Diversified industries such as life science & healthcare, manufacturing, media, travel & hospitality and telecom contributed to the significant growth.
Europe led growth, driven by the continuous investments being made in that market, while North America and UK also grew during the quarter.
Among growth markets, Latin America, APAC and MEA registered strong growth. India business suffered from volatility and declined sequentially. Among service lines, Business Process Services, Enterprise Solutions, Global Consulting were the leaders.