Tata Consultancy Services Ltd. (TCS), India’s largest software exporter, rose the most in more than two months after profit beat estimates and the company reiterated its sales will expand faster than industry average.
“TCS has been getting a lot of market share from its customers’ vendor consolidation exercises,” said Ankita Somani, an analyst at Angel Broking Ltd. in Mumbai. “It is benefiting from a push in emerging economies, like Latin America.”
The company won new contracts in the quarter from mobility, data, cloud computing and social media services, Chandrasekaran said at a press conference in Mumbai on 11JUL12. The decline in the rupee helped the company mitigate the impact of wage increases, training and visa costs, he said.
The Indian rupee was Asia’s worst-performing currency against the dollar in the three months ended June, with an 8.6 percent depreciation over the period.
Tata Consultancy draws the majority of its revenue in dollars and euros from clients based in U.S. and Europe. A weakening in the rupee inflates the repatriated value of overseas sales.
“The unprecedented volatility among major currencies and the Indian rupee will continue to be a challenge in the short term,” Chief Financial Officer S. Mahalingam said in a statement. “We are taking the steps to mitigate any risks arising from this scenario.”