E-Paper
Digital services boost TCS’s net profit in Q1
Profit rose to ₹9,008 crore in the three months ended June 30, the company said. Earnings, however, missed the consensus estimate of ₹9,382.5 crore in a Bloomberg survey.
Tata Consultancy Services Ltd (TCS) reported a 28.5% increase in fiscal first-quarter profit amid strong demand from financial services, retail and healthcare clients in the US and UK.
Profit rose to ₹9,008 crore in the three months ended June 30, the company said. Earnings, however, missed the consensus estimate of ₹9,382.5 crore in a Bloomberg survey.
June quarter revenue grew 16.4% in constant-currency terms to ₹45,411 crore in line with the consensus estimate of ₹45,748.6 crore. However, weakness in some regional markets, including India, impacted sales growth.
“We believe the impact on India revenues will be reverted in the coming quarters. Hence, we expect improving revenue trajectory and expect the company to achieve double-digit revenue growth in FY22,” ICICI Securities said.
Dollar revenue for the quarter grew 21.6% from a year ago to $6.15 billion, helped by new orders worth $8.1 billion from banking, financial services and insurance (BFSI) and retail clients. “Our business in North America, BFSI, and retail all showed appreciable growth, which underlines the resilience of our operating model, the relevance of our offerings and, above all, the passion and dedication of our associates.,” said Rajesh Gopinathan, chief executive officer and managing director, TCS.
