India's largest software company, Tata Consultancy Services on Monday crossed the $1 billion milestone in revenue in third quarter of this fiscal, while revenues crossed the $3 billion mark for the first nine months of this fiscal.

“TCS thus becomes the first Indian IT company to clock $1 billion in revenues in a single quarter,” TCS CEO and managing director S. Ramadorai told reporters here. The company clocked 8.42 per cent growth in revenues at Rs 4,873 crore and net profit of Rs 1,116 crore ($252 mn), up 9.56 per cent compared to the same quarter last fiscal.

“We added 55 new clients and 7,835 employees, besides bagging a $140 million deal from a Ecuadorean bank,” he said. It also concluded two $100 million and three $ 50 million deals during the quarter. The company’s performance has been creditable, especially when viewed against the backdrop of an appreciating rupee, TCS Chief Financial Officer S Mahalingam said.

"Our operating margins improved by 79 basis points QoQ," he said. Margin expansion was mainly on account of better pricing and cost efficiencies, he said. The company has hedged $ 583 million at around Rs 45-45.50 for Q4, he added. N. Chandrasekaran, global head, sales and operations, said it was achieving a three-five per cent growth in contract renewals and a 5-10 per cent enhancement on new contracts. The deal pipeline was "fantastic", Chandrasekaran said, adding the company was in the process of closing 10 more deals. There was 30 per cent growth in revenues from its Global Network Delivery Models, he said, adding that out of its total revenues, 41.6 per cent came from offshore, 4.1 per cent from global delivery centres and remaining from on-site businesses. "All our clients are ramping up their businesses," he said, adding that productivity enhancement and shift of work off-shore had also contributed to improving margins, despite appreciation in the rupee.