Mumbai: India ''s largest software company Tata Consultancy Services reported a 36 per cent jump in net profit year-on-year at Rs1,203 crore in the first quarter (April-June) 2007.

TCS'' revenues had grown 25.2 per cent at Rs5,203 crore even as the company added six $100 million clients in the April-June quarter. In dollar terms, TCS revenues grew by 8 per cent during Q1.

"Despite factoring in wage hikes and an appreciating rupee, we have maintained profitability by great execution, demand creation and strong financial management," S Ramadorai, CEO and MD of Tata Consultancy Services, said in a statement.

TCS added 54 new clients in the first quarter while it hired 5,512 employees. Attrition was almost unchanged at 11.5 per cent against 11.3 per cent a quarter ago. Business from the existing clients increased to 99.2 per cent against 94.9 per cent of the earlier quarter.

TCS continued to drive strong focus on countering the impact of the appreciating rupee against the US dollar and other major currencies. At the end of Q1, TCS had about $2.5 billion outstanding in hedges.

TCS'' revenue growth has been driven by volume increases with an upward pricing bias, with banking, financial services, telecom and life sciences verticals performing strongly, the statement said.

"Though our margins were impacted by drastic rupee appreciation as well as planned wage increases during Q1, we have been successful in mitigating these factors through productivity increases, cost management as well as hedging gains," said S Mahalingam, CFO of the company.

Among service lines, assurance services and asset-leveraged solutions continue to grow faster than the average company growth rate.

"Our brand-building campaign based around the concept of certainty in IT services continues to increase awareness of our brand worldwide and position us as a leading IT service provider globally, helping us gain mindshare from our customers," said Phiroz Vandrevala, head, global corporate affairs.

The company has over 94,000 employees in 47 countries generated consolidated revenues of $4.3 billion for fiscal year ended 31 March, 2007.

TCS had currency hedges of $2.5 billion at the end of the first quarter. The rupee climbed 6.8 per cent against the US currency in the three months ended June 30, its biggest gain in more than three decades.

The currency has risen 9.5 per cent this year, making it Asia''s second-best performer, and is well on way to set the 40.24 rupees to a dollar mark the end of 2007.