Unprecedented volatility continues to be a challenge: TCS

After posting strong first quarter numbers , India's top software services provider Tata Consultancy Services said, unprecedented volatility continues to be a challenge. "The company is taking steps to mitigate risks from currency volatility."

TCS has posted a stellar set of first quarter numbers that meet street expectations. The company's dollar revenues were up 2.5% and profit after tax was also up a whopping 11.8%.

Net profit rose 38% year-on-year (12% sequentially) to Rs 3,280.5 crore, while revenue was also up 38% (up 12% quarter-on-quarter) to Rs 14,869 crore.

Addressing a press conference, the management said growth was seen across all industry segments led by retail, telecom and BFSI (Banking, Financial Services and Insurance). The management included managing director and chief executive officer N Chandrashekhar, chief financial officer and executive director Mahalingam, global head HR Ajoy Mukherjee and vice chairman and Diligenta's managing director Vandrevala.

"We maintained profitability in a volatile setting," it stressed.

Retail grew 8.3%, telecom grew 7.6% on constant currency (CC) basis. BPO, infra, global consulting enterprise services also did well.

The company witnessed a volume growth of 5.3% in Q1. "North America grew 3% on CC basis, while India fell 7% on CC basis," the management said.

The company added 29 new clients in the quarter ended June 30. The IT major also signed a USD 100 million plus contract with North American Retailer.

TCS added 4,962 employees in the quarter, taking its total employee strength to 2,43,545 on a consolidated basis. The management has maintained a hiring guidance of 50,000 for FY13.

Vini Amesar

vini.amesar@network18online.com