Tata Consultancy beats estimates

The Times of India reports.

The firm rose as much as 10.18% to a day's high of 1 167.8 rupees at the Bombay Stock Exchange as analysts gave a positive outlook for the firm, which is part of the steel-to-tea Tata conglomerate.

Tata Consultancy joins larger rival Accenture in reporting profits that exceeded analysts' estimates, as businesses outsource more information technology services to cut costs amid economic uncertainty, Bloomberg Businessweek says.

Tata Consultancy, which formed a joint venture with Mitsubishi to boost orders in Japan, is seeking to expand in new regions as sales slow down in its traditional markets of North America and Europe.

“It's impressive,” said Pralay Kumar Das, an analyst at Elara Securities India, in Mumbai. “Their peers, who had less exposure to customers in the banking, financial services industries, struggled. TCS was able to hold BFSI revenue steady during a tough time in spite of having greater exposure.”