India’s TCS surpasses profit estimates on pandemic-led digitization demand

BENGALURU (Reuters) – India’s Tata Consultancy Services Ltd surpassed quarterly earnings estimates on Friday, boosted by growth in the core banking and financial services segment and strong demand for digital services amid the COVID-19 pandemic.

The country’s largest information technology exporter is the first of its peers to report second-quarter earnings, with investors looking to the clock to gauge the prospects for the industry that has had a stellar performance over the past year.

The Mumbai-based company’s consolidated net profit rose 29% to 96.24 billion rupees ($1.28 billion) in the three months to September 30, from 74.75 billion rupees a year earlier. Analysts had expected an average profit of 96.01 billion rupees, according to data from Refinitiv.

Consolidated revenues increased 16.8% to rupees 468.67 billion, with the company’s banking and financial sector unit up 14.3% year-on-year.

TCS and rivals Infosys, Wipro and HCL Technologies have won major contracts in the past year from companies investing in services such as cloud computing, digital payment infrastructure, crypto platforms and cybersecurity.

TCS said it added five additional customers in the quarter in the range of more than $100 million compared to a year earlier, bringing the total to 54.

The company also reappointed Rajesh Gopinathan as chief executive officer and managing director for five years.

($1 = 74,9390 Indian rupees)

(Reporting by Nallur Sethuraman in Bengaluru; editing by Vinay Dwivedi and Rashmi Aich)

Leave a Comment