TCS net profit up 24 percent,to hire 40,000

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TCS net profit up 24 percent,to hire 40,000
MUMBAI: Tata Consultancy Services (TCS) has reported a net profit of 24 percent to 1,906 crore for the April-June quarter and grew its first-quarter sales by 14 percent to 8,217 crore. TCS grew its first-quarter sales by 14 percent to 8,217 crore. The company does not make revenue or earnings forecasts. Earlier on Thursday, before TCS' results were announced, the company's stock closed 1.22 percent higher at Rs 784.10 on BSE. N.Chandrasekaran, CEO and managing director of India's largest software exporter, said volume growth of 8.1 percent was the best the company had seen since September 2008. "The current demand outlook is very good but the macro-economic condition is dynamic, especially in Europe," he observed. "An 8 percent volume growth further validates the strength of the demand recovery and just a 36-basis-point quarter-on-quarter margin decline despite wage hikes indicates TCS' improved cost-containment ability. There are plenty of things TCS has been working on, such as closing offices and raising sales productivity," brokerage house CLSA wrote in a note on Thursday after the company's results announcement. To meet the renewed demand, TCS now plans to hire 40,000 this year, higher than the around 30,000 it had projected earlier this year. Infosys said it will hire 36,000 this financial year, up from around 30,000 it had projected in April. "We are seeing a very good demand environment with the discretionary spend kicking in. Our analysis indicates that there could be an uptick in pricing," Chandrasekaran said.