* Q2 net profit 47.02 bln rupees vs analysts' estimate of
* Financial sector and Europe boost results
* Operating margin hits record 30 pct
By Aradhana Aravindan and Harichandan Arakali
MUMBAI/BANGALORE, Oct 15 Tata Consultancy
Services (TCS), India's largest IT services exporter, is
considering accelerating its hiring plans after beating
quarterly profit expectations on increased demand from financial
clients and in Europe.
Companies such as TCS have stepped up efforts to increase
their market share in continental Europe in recent years to
reduce dependence on the United States, which is by far the
biggest market for India's $108 billion IT services industry.
TCS and rivals such as Infosys and IBM won
a record $6 billion of IT contracts in the three months to Sept.
30, according to the Information Services Group consultancy,
partly driven by IT outsourcing by European companies looking to
Continental Europe contributed 11.2 percent of TCS revenue
for the quarter, against 9.7 percent in the same period last
"Our pipeline is good, and I think from here we need to look
at scaling in Europe," TCS Chief Executive N. Chandrasekaran
told reporters after the company posted consolidated net profit
for the quarter up 34 percent year on year to 47 billion rupees
That compared with an average of 44.7 billion rupees in
estimates by 27 analyst, according to Thomson Reuters I/B/E/S.
TCS, which employs 285,250 people, is on track to hit its
gross hiring target of 45,000 to 50,000 staff for the financial
year to March 31 and would consider going beyond that figure,
said head of human resources Ajoyendra Mukherjee.
"We're quite positive, so we may increase hiring numbers,"
CEO Chandrasekaran added.
Shares in the company, India's largest company by market
value, hit a record high on Monday in expectation of the
earnings announcement after the stock market close on Tuesday.
The shares were little changed on Tuesday, finishing the day at
TCS's operating margin rose to a record 30.1 percent, with
the rupee's decline against the dollar lifting the margin by
three percentage points. The bulk of the company's contracts are
The financial sector accounted for 43.1 percent of the
company's quarterly revenue, up from 42.8 percent a year
On Friday Infosys, India's second-largest IT services
provider, said that improving macroeconomic conditions augured
well for client spending on IT outsourcing and raised the lower
end of its revenue forecast range.