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Tata Consultancy Services Q4 profit beats estimates, rises 4.4%
TCS’s strong results echoed those of smaller rival Infosys Ltd, which kicked off the earnings season last week with a higher profit and a healthy revenue forecast for the year even as its margin forecast failed to impress.
Tata Consultancy Services (TCS) , India’s biggest software services exporter, posted a higher-than-expected profit in the fourth quarter, helped by the number of contracts the company won.
TCS’s strong results echoed those of smaller rival Infosys Ltd, which kicked off the earnings season last week with a higher profit and a healthy revenue forecast for the year even as its margin forecast failed to impress.
Strong demand in digital and large contract wins helped growth in the quarter, chief executive Rajesh Gopinathan said in a statement on Thursday.
Revenue from digital services such as cloud, analytics, big data grew about 43%
TCS said on Thursday, revenue from its banking, financial services and insurance business, the company’s biggest revenue stream, rose five percent to ₹124.30 billion. ($1.89 billion).
Net profit attributable to shareholders rose 4.4% to ₹69.04 billion ($1.05 billion) in the quarter, beating analysts’ average estimate of 67.98 billion rupees, according to Thomson Reuters data.
TCS, India’s most valuable listed company with a market capitalisation of about $92 billion and part of salt-to-software conglomerate Tata group, posted 8.2% rise in income from operations.
Shares gained one% ahead of results in a broader Mumbai market that ended 0.37% higher.
