India's largest software outsourcer TCS said Thursday its first quarter net profit jumped 28 percent, beating forecasts, as demand for outsourcing improved.
The firm, part of the Tata tea-to-steel conglomerate, said its net profit for the three months to June rose to 23.8 billion rupees ($530 million) from 18.6 billion rupees a year earlier, using international accounting norms.
Revenues in the quarter climbed 31 percent to 107.97 billion rupees, a statement on the company's website said.
Analysts had expected TCS to post a net profit of 23 billion rupees.
TCS shares fell 2.23 percent or 25.65 rupees to 1,125.25 rupees ahead of the earnings figures, in lacklustre trade.
The software giant added 24 new clients and 3,576 employees in the quarter.
"Though we continue to see steady demand for our services, the uncertain global macroeconomic demands that we remain agile for growth opportunities," said N. Chandrasekaran, chief executive of TCS.
Earlier this week, rival Infosys showed 16 percent rise in net profit, but its shares fell 4.27 percent after it gave a muted outlook.
Infosys said clients were cautious in an uncertain economic environment as it announced that consolidated net profit in the three months to June rose 15.7 percent year-on-year to 17.22 billion rupees ($380 million).
TCS and other outsourcing companies have made India a top business destination by offering a range of jobs from software development and information technology to business process outsourcing.
Revenues from India's outsourcing sector are forecast to grow 16-18 percent to $70 billion in fiscal 2011-12, according to the National Association of Software and Services Companies.