Mumbai, Jan 17 (Agencies): IT major Tata Consultancy Services (TCS) has beaten market estimates by posting 30 per cent jump in consolidated net profit at Rs 2,369.83 crore for the third quarter of the current fiscal, on the back of strong volume growth and high operating margins.

The company has declared the third interim dividend of 200 per cent -- Rs 2 per equity share of Re 1 each.

TCS net income rose about 30 per cent to Rs 2,370 crore in October-December, 2010, from Rs 1,823 crore the year-ago period.

"Sharp focus on our strategy with rigorous execution discipline has helped us capture volumes, defend our margins and deliver another stellar quarter," TCS CEO and MD N Chandrasekaran told reporters here.

Income from operations in Q3 rose to Rs 9,663.35 crore, up 26.34 per cent from Rs 7,648.53 crore in the year-ago period.

Chandrasekaran said the demand environment continues to be strong and the company is focused on helping customers become more efficient and plan for growth.

"With clients focused on transforming their businesses and becoming globally competitive in this dynamic macro environment, we are optimistic that demand for our solutions will continue to be strong going forward," Chandrasekaran said.

"Our out-performance has been the result of a sustained effort from all operating teams to focus on growth with profitability. As we grow in size, we will have more levers at hand to combat headwinds and maintain our profitability while continuing to grow," TCS's CFO S Mahalingam said.

"We continue to live with currency volatility and have leveraged our cost management ability to deliver on margins," he added.

TCS' offshore revenues were up by 30 basis points at 51.4 per cent.

Growth was led by the developed markets -- the US and Europe, with strong contributions from Asia-Pacific, the Middle East and Africa.

The portfolio of industries has shown strong growth. TCS' full services capabilities continue to be leveraged by customers, with new service lines like assurance and infrastructure  services growing at a fast clip.

Chandrasekaran said the deal pipeline is good as the company added 35 new clients in the USD 5-to-100 million plus category during Q3.

During the period, the company has signed a multi-year, multi-million agreement with a global top 10 airline for application maintenance and support of its critical customer-centric applications.


Hires 50,000 in 9-months of FY 11

Tata Consultancy Services (TCS), India's largest software exporter, on Monday said it has hired 50,000 personnel in the nine-month period ended December 2010 and expects to add another 12,000-15,000 in Q4.

TCS added 20,219 people (gross) during the quarter, its highest addition yet, taking its total headcount to 1,86,914 at the end of the December quarter.

"Given the strength of business demand, we have exceeded the hiring target of 50,000 employees, we had set for this fiscal year," TCS's Vice-President, Head, Global Human Resources, Ajoy Mukherjee, told reporters here.

"We have welcomed the highest-ever number of new TCSers in a single quarter with a gross addition of 20,219 employees as we continued to support the company's strong growth and business pipeline," Mukherjee said.

However, the company faces the major challenge of attrition, TCS CEO and MD, N Chandrasekaran, said.

"Our short-term challenge is we have to continue to retain people although the attrition rate has come down in Q3 FY 11," Chandrasekaran said.

Utilisation in Q3 FY 11 remained at 83.8 per cent (excluding trainees) and 77.1 per cent (including trainees).

The attrition rate in Q3 for IT Services was 13.2 per cent and BPO 24.7 per cent while overall attrition was at 14.4 per cent. At the end of Q3, non-Indian nationals formed 6.8 per cent of the total employee base and 31 per cent were women.