The firm, also known by its acronym, TCS, said net profit for the three months to June rose to 12.03 billion rupees (481 million dollars) from 8.83 billion rupees a year earlier.

Income in the first quarter rose nearly 27 percent to 53.65 billion rupees.

TCS shares fell 8.95 rupees or 0.79 percent to 1,127.9 ahead of its earnings statement, while the Indian stock market rose 0.25 percent or 38.5 points to a record 15,311.22.

Dealers had expected sharp gains in the rupee this year to a near decade high against the dollar to hurt local currency earnings, since many of the firm's clients pay in dollars.

TCS is part of India's diversified Tata group and employs more than 83,500 people from 60 different nationalities.

The Mumbai-based firm earns nearly half of its revenues from banking and financial services in an industry that relies on India's cheap but skilled English-speaking workforce.

TCS listed on Indian exchanges in August 2004 after raising 1.2 billion dollars.