Tata Consultancy Services recorded a net profit of Rs 1,271 crore. The company managed to register only 1.5 percent growth compared to the previous results. India’s largest IT services provider has branches in many countries. Non repayment by banking, financial services and insurance (BFSI) clients in the US, would affect the growth of the company in the long run. Dollar depreciation against other currencies such as pound and Euro also hit the margin of the company.

TCS also made big loss due to hedging of funds. Indian currency’s decline against US dollar would have helped the company, but due to hedging, the company has made a loss of more than Rs 200 crore.

TCS has large exposure in banking, financial services and insurance sectors. It has recruited more staff and made new clients worldwide. The company expects more profit from BFSI segment despite financial crisis. The company is eying about 20 new deals. The operating profit margin of company grew by 164 bps (Indian GAAP) in the given quarter.

The CEO and MD, S Ramadorai said that the company would play a leading role in the global recovery from the financial crisis. The company has already acquired operations of Citigroup Global Services which would prove another driving force for economic recovery of the world.