India’s Tata Consultancy Services topped quarterly profit estimates on Friday, boosted by growth in its core banking and financial services segment and strong demand for digital services during the COVID-19 pandemic.
The nation’s largest information technology exporter is the first of peers to report earnings for the second quarter, with investors looking to Belvedere to gauge the outlook for the sector over the past year.
The Mumbai-based company’s consolidated net profit rose 29 percent to Rs 96.24 billion ($ 1.28 billion) in the three months to September 30, from Rs 74.75 billion a year ago. Analysts had expected an average profit of Rs 96.01 billion, according to data from Refinitiv.
Consolidated revenue from operations grew 16.8 per cent to Rs 468.67 billion, with the company’s banking and finance industry-focused unit registering a 14.3 per cent growth over a year ago.
TCS and rivals Infosys, Wipro, And HCL Technology Large contracts have been won over the past year from businesses investing in services including cloud-computing, digital payment infrastructure, crypto platforms and cyber security.
TCS said it added five more customers in the range of over $100 million in the quarter compared to a year ago, bringing a total of 54 customers.
The company re-appointed Rajesh Gopinathan as Chief Executive Officer and Managing Director for a period of five years.
© Thomson Reuters 2021