Driven by the growth of its major banking and financial services sectors and the strong demand for digital services during the COVID-19 pandemic, India’s Tata Consultancy Services had a higher-than-expected quarterly profit on Friday.
The country’s largest information technology exporter was the first to announce its second-quarter earnings, and investors focused on the leaders to gauge the prospects for the industry’s outstanding performance in the past year.
In the three months ended September 30, the Mumbai-based company’s consolidated net profit increased by 29% to 96.24 billion rupees ($1.28 billion), compared with 74.75 billion rupees in the same period last year. According to data from Refinitiv, analysts have an average expected profit of 96.01 billion rupees.
Consolidated operating income increased by 16.8% to 468.67 billion rupees, and the company’s banking and finance-focused sectors increased by 14.3% year-on-year.
In the past year, TCS and competitors Infosys, Wipro and HCL Technologies have won a large number of contracts with companies investing in cloud computing, digital payment infrastructure, encryption platforms, and network security services.
TCS said that compared with the same period last year, the number of customers with more than $100 million in the quarter increased by 5, bringing the total to 54.
The company also reappointed Rajesh Gopinathan as its chief executive officer and managing director for five years.
© Thomson Reuters 2021
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