Outsourcing firm Tata Consultancy Services reported its earnings in the fourth quarter ending March 31, along with its annual figures. Apparently business is stronger than ever.
Net income in increased 23 percent from last year’s 23.9 billion rupees to 29.3 billion, or $556 million; analysts expected Tata to announce a figure closer to 28.3 billion rupees.
Revenue in turn rose from 101.6 billion rupees to 132.6 billion rupees in this latest quarter, a 31 percent gain. About 53.3 percent of that came from clients in North America, and 25.3 percent from the UK & Europe.
The company cited a few of its recent major deals in these markets–Tata was chosen by a major retailer to become its global services partner, and a smartphone manufacturer agreed to pay seven figures for on-going app maintenance and support.
While the firm’s Q4 figures certainly didn’t disappoint, the annual totals did manage to outperform. Tata is now officially the first Indian company to have ever passed the $10 billion mark with $10.17 billion in revenue, and the fiscal year was the largest to date in terms of expansion.
“We have successfully undertaken the largest ever hiring effort in our history by adding and integrating 70,400 professionals during 2011-12,” said Ajoy Mukherjee, Executive Vice President, Head, Global Human Resources. ”With business demand continuing to be robust, we have made 43,600 offers on campuses for trainees to join us from the second quarter of this fiscal year.”
But HR is also the area in which Tata is facing a potentially massive public image crisis. Former workers have filed suit over some of the methods the services provider is allegedly employing to realize all this growth – a breach of contract for one thing.