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Tata Earnings Spike, To Merge With Sister Unit

The outsourcer Tata Consultancy Services says its first-quarter earnings are up 34 percent, and it's merging with Tata Infotech to improve marketing efficiency.
India's outsourcing colossus Tata Consultancy Services (TCS) reported that its first quarter net jumped 34 percent over the previous quarter and said a merger with its sister unit Tata Infotech Ltd. (TIL) will lead to more efficient marketing of its services operations.

TCS' profit for the quarter ending in June was $144.8 million (6.3 billion rupees compared with 4.71 billion rupees in the previous quarter). Because TCS only recently began reporting its financials after its stock was publicly listed, comparable figures for the earlier year were not available.

TIL has substantial operations in the U.S., U.K., Australia, and other nations, TCS said. As for TCS, its revenues in its latest accounting year were more than $2 billion, the firm said.

"The merger (with TIL) will provide TCS an expanded customer base and a deeper penetration in key geographies, and TIL customers will have access to the wider range of services offered by TCS," the firm stated, noting that TIL has a strong presence in system integration.

In announcing its earnings, TCS said that it had recently landed a $100 million order from a U.S. financial services firm that it did not identify. The majority of shares in TCS and TIL are held by Tata Sons Ltd. TCS said it has more than 43,000 employees.