After Tata Consultancy Services Ltd (TCS) posted a 21 per cent increase in its quarterly profit, the shares of the company rose by 4 per cent on Friday.

The company is one of the leading outsources in India and has managed to outperform the analysts expectations. And the reasons behind the same are various stringent cost cutting measures and also strong demand in the outsource market.

The other good thing is that the company was also able to provide and upbeat assessment of the actual demand. Besides, rise in profitability also did its bit for the firm.

For the April-June quarter, the profits rose by 24 per cent to end at Rs 1,906 crore. The volume growth increased by 8.1 per cent during the time and has been the best that TCS has seen since September 2008.

The information was given by Chandrasekaran, CEO and managing director of TCS. It is India's largest software exporter and has also seen rise in that side of the business as well.

Talking to media, Chandrasekaran said that the current demand outlook is good as the macro-economic conditions change.