India's biggest outsourcing firm Tata Consultancy Services Thursday reported a 45 percent jump in quarterly net profit from a year ago, led by strong growth in business from North America.
The Mumbai-based company, commonly known as TCS
, indicated its outlook was upbeat thanks to a "strong demand pipeline" and expectations of strong growth in markets like the United States, United Kingdom and Europe.
TCS said net profit for the first financial quarter, ended June 30, surged to Rs. 5,568 crores ($928 million) from Rs. 3,840 crores a year ago.
"Robust volumes and healthy growth across all industries and key markets helped TCS to start the new financial year on a strong note," TCS chief executive N. Chandrasekaran said in a statement.
(Also see: TCS to hire 55,000 employees this fiscal year
The firm inked seven large deals in the April-June quarter and was negotiating eight more big ones, Chandrasekaran told reporters.
TCS's chief financial officer Rajesh Gopinathan said that a "disciplined stance in operations" helped the firm successfully face "multiple headwinds" from the rupee's rise and wage hikes.
(Also see: Wipro reports 29 percent jump in Q4 net profit on increased IT
"Looking ahead, we will continue to maintain our operating margins in our desired band by operating efficiently," Gopinathan said in a statement.
The firm said it had hired 15,817 people in the just ended quarter takings its employee base to 305,431 persons.
(Also see: HCL posts strong Q3 earnings on increased demand of outsourcing services
India has become a back office to the world as companies, especially in developed nations, have subcontracted work to firms such as TCS, taking advantage of the country's skilled English-speaking workforce.
The flagship industry has made India a top business destination by offering software development and information technology, engineering and design and other services.
Last week, Infosys, India's second-largest software services exporter after TCS, reported that its first-quarter net profit rose 21 percent to Rs. 2,886 crores from a year earlier.
It maintained its forecast of a seven-to-nine percent rise in revenues in the 2014-15 financial year, suggesting that tough times for the firm were ending.