BANGALORE Jan 14 Tata Consultancy Services Ltd
(TCS), India's No.1 software services exporter, joined
rival Infosys Ltd in posting a stronger-than-expected
23 percent rise in quarterly profit, fuelling hopes of a broad
pickup in tech spending.
Net profit rose to 35.52 billion rupees ($652 million) for
the quarter ended December from 28.87 billion rupees a year
earlier, TCS said on Monday. That compares with an average
estimate of 32.43 billion rupees in a poll of 19 analysts,
according to Thomson Reuters.
India's $100 billion IT services sector has been under
pressure to stay profitable as clients in key markets including
the United States and Europe maintain a cautious stance on tech
spending due to the uncertain global economy.
Fuelling speculation the sector may be turning a corner,
second-ranked Infosys Ltd on Friday raised its full-year revenue
forecast after new clients and an acceleration in IT spending by
existing customers helped the Bangalore-based company post a
stronger-than-expected quarterly profit.
TCS, which does not provide detailed revenue forecasts, has
maintained it expects to beat the industry's export revenue
growth forecast set 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
year ending in March.