Menu
India's Tata posts revenue growth, but profit down

India's Tata posts revenue growth, but profit down

More work done offshore from India helps lower costs

India's largest outsourcer, Tata Consultancy Services (TCS), reported Monday that its revenue grew by 6.8 percent to US$6 billion for its fiscal year ended March 31. The company's profit however fell by 10.1 percent to $1.12 billion.

The growth in revenue was 23 percent higher in terms of Indian rupees because of the depreciation of the rupee against the U.S. dollar.

The results are based on U.S. generally accepted accounting principles.

TCS and other Indian outsourcers are facing a slow-down in business from their U.S. and European clients. Discretionary projects are not taking off, and some clients are renegotiating contract prices as they go through difficult fiscal times, said N. Chandrasekaran, TCS' chief operating officer, during a press conference that was also webcast.

The company's CFO (chief financial officer) S. Mahalingam said that a single-digit decline in prices was expected in the current fiscal year.

India's second largest outsourcer, Infosys Technologies, said last week that its revenue in the fiscal year ending March 31, 2010, may decline by 3.1 to 6.7 percent over the previous year.

For the fiscal year ended March 31 this year, Infosys posted revenue of $4.7 billion, up by 11.7 percent over revenue in the previous year. Profits were $1.3 billion, up 10 percent over the previous year.

TCS increased operating profits in the last fiscal year by 11.7 percent to $1.43 billion by improving operational efficiency, including an increase in work delivered offshore from India.

Doing work offshore helped the company increase staff utilization and better manage costs, Mahalingam said.

The company had 143,761 staff at the end of the fiscal year. It added 32,354 employees during the year, including staff from the company's acquisition of Citigroup's back office services subsidiary in India.

TCS has made 24,885 campus offers for the current fiscal year. It added 163 customers during the year, of which 36 were in the fourth quarter.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments