TCS upbeat on Q3, to hire more employees

Upbeat over the company’s performance in the successive third quarter ended December 2009, the IT giant Tata Consultancy Services (TCS) is looking forward at hiring 8,500 trainees and around 3,000 laterals in fourth quarter of the financial year 2010.

"We have already employed 8,703 trainees in Q3 and expect to add 8,500 more trainees in Q4 FY 10. We have had significant employee additions in Q3 and given the growth we may continue to hire in Q4 as well," TCS' Vice-President and Head, Global Human Resources, Ajoy Mukherjee, told reporters.

Setting aside the effect of global recession, the country’s largest information technology (IT) services exporter has reported a 34 percent growth in its net profit at Rs.1,824 crore for the third quarter ended December 31, 2009, against Rs.1,362 crore in the year-ago period.

The company’s revenue grew up by 5.1% from Rs7,277 crore in the third quarter of December 2008, to Rs7,649 crore in the December quarter of the current fiscal. Encouraged by the company’s performance TCS announced a quarterly dividend of Rs.2 per share.

The company benefited from a sequential growth in the banking, financial services and insurance (BFSI) which helped together in growing TCS’ revenue from Rs.7,435 crore in the September quarter to Rs.7,649 crore in the December quarter, while the same period witnessed growth in profit from Rs.1,642 crore to Rs.1,824 crore.

The BFSI vertical contributed around 45% of TCS’ revenues. BFSI revenues were Rs. 3,441 crore (Rs. 3,086 crore), manufacturing Rs. 592.48 crore (Rs. 721 crore), retail and distribution Rs. 801 crore (Rs. 716.3 crore), telecom Rs. 1,113.23 crore (Rs. 1,12.7 crore) and others Rs. 1,701 crore (Rs. 1,591.2 crore). TCS gets around 53% of its revenue from clients in the US.

“TCS yet again posted high growth and delivered on margin improvements for the third successive quarter in this difficult year. Our investments ahead of time in emerging markets, multiple industries and client relationships, is reflected in our exemplary performance,” N. Chandrasekaran, CEO and Managing Director, toldMedia.

India’s second largest IT exporter Infosys Technologies Ltd reported on Tuesday a sequential growth of 6.8% in dollar revenues with the support from BFSI in the US.