Indian IT services supplier Tata Consultancy Services (TCS) has increased first quarter sales 25 per cent to 52 billion rupees (£635m) in what it calls a ‘volatile quarter’.

The firm added 54 new clients during the quarter, including a large UK retail bank and airline, as profits rose 37 per cent to 11.8 billion rupees (£144m).

The results were achieved despite increasing wages and an appreciating rupee, says chief executive S. Ramadorai.

‘We have maintained profitability by great execution, demand creation and strong financial management,’ he said.

‘Our focus on delivery excellence continues to provide the experience of certainty to our customers.’

TCS says it expects continued customer demand in the banking, financial services, telecom and retail sectors.

The company achieved a number of significant contract wins in those sectors, including a range of telecom services in Asia and an application and support services deal for US financial services company.

TCS also says it has maintained the lowest staff attrition in its industry, with first quarter turnover of 11 per cent in IT services and 16 per cent in business process outsourcing.

‘Our ability to nurture talent, upgrade skill levels and match employee aspirations helps our retention rates and deliver certainty to our customers and employees,’ said TCS global head of human resources S. Padmanabham.