The country's largest software exporter, Tata Consultancy Services has reported a rise of 34 per cent in net profit for the third quarter of the current financial year. The results beat market expectations on the backing of increasing IT spending across the globe.

The net profit for the firm, stood at Rs 1,824 crore against Rs 1,362 crore reported in the year-ago period while revenues grew 5.1 per cent to Rs 7,648 crore.

Mr. N. Chandrasekaran, Chief Executive Officer and Managing Director said, "We have seen growth in all verticals, including the troubled ones such as hi-tech and telecom. Geography-wise, we see a broader recovery not only in the US, but also in Europe, Asia-Pacific and India."

IT spend is on the rise across various countries which includes new projects.  TCS with clients such as Citibank, Chrysler and GE, is sealing deals in the same pace as it did before the financial crisis hit the global economy.  

The business in the domestic segment grew 8 per cent on the backing of deals from sectors such as government, financial services and others. Domestic operations account for nearly 8.5 per cent of the revenues.

Two states have decided to partner TCS in Accelerated Power Development and Reform Programme and the deals are worth over Rs 450 crore. Energy and utilities sector accounted for 3.4 per cent of the company revenues from 2.8 per cent in the second quarter.  

The losses from hedging came down to Rs 35 crore as against Rs 113 crore reported in the previous sequential quarter. The company is in efforts to bring down costs and expects the rupee to further appreciate.

TCS has announced a quarterly dividend of Rs 2 a share. Shares of the company closed 1.23 per cent higher at Rs 791.80 on BSE on Friday.