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India's top IT consulting firms all enjoy strong first fiscal quarters

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Mumbai and Bangalore: India's top IT consulting firms have all enjoyed strong fiscal quarters to the end of June, driven by good performances in the US.

Tata Consultancy Services , TCS, India's leading IT services, consulting and business solutions firm reported what it described as a "stellar quarter" driven by strong business volumes.

  • Revenues up 16% at $3.16 billion
  • Operating Profit at $ 856 million up 14% Y-o-Y
  • Gross Addition of 10,611 Employees
  • High Utilisation rates at 82.7% (excluding trainees)
  • Two new $100 million clients added

Commenting on the first quarter performance, Chief Executive Officer and Managing Director, N Chandrasekaran said, "We have delivered another solid quarter, driven by the highest volume growth in the past seven quarters. It has been an all-round performance with strong revenue growth across markets led by the US. Our investments in Europe continue to gain strong traction with customers and helped us deliver industry-leading growth this quarter."

"Strong momentum in our business, the right cost structure, a customer-centric approach and our increasing investments in new digital solutions and services positions us well to post another year of strong business growth."

Meanwhile Wipro saw net income up 11% in its first quarter, ended June 30, 2013.

  • Revenues from continuing operations were up 5% Y-o-Y to $1.64 billion
  • Net Income $273 million,, an increase of 11%.

Azim Premji, Chairman of Wipro, said, "We are seeing higher confidence among our clients on the backdrop of positive macroeconomic developments, particularly in the US."

T K Kurien, Executive Director & Chief Executive Officer of Wipro, said, "We are seeing a pickup in large deal closures which has reflected in strong order book in the current quarter. Our clients look to technology to pursue growth and profitability and increase organizational agility."

Suresh Senapaty, Executive Director & Chief Financial Officer of Wipro, said, "Our investments in client mining have shown benefits with strong growth in our top clients. We have given wage hikes for both onsite and offshore employees effective June 2013, which has impacted our operating margins in the quarter."

The firm says it expects revenues from its IT Services business for the second quarter ending September 30, 2013, to be in the range of $1.62 billion to $1.65 billion.

Earlier in the month Infosys bounced back, reporting revenues up 13%.

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