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TCS posts record quarterly profit on strong growth in BFSI unit

Reuters 

(Reuters) - India's top software services exporter, Ltd, posted a record quarterly net profit in the June quarter, driven by robust growth in its Banking, Financial Services and Insurance (BFSI) division.

TCS, whose first-quarter profit beat analysts' expectations, had said in April it expected a rebound in spending by its key clients in North America, its biggest market, in the financial year to 2019.

Revenue from its business, the company's biggest revenue stream, rose to 134.64 billion rupees ($1.96 billion)from 117.89 billion rupees, the company said in a statement on Tuesday.

"Our vertical recovered very nicely this quarter, while other industry verticals maintained their momentum," said, adding the revenue growth this quarter was the fastest in the last 15 quarters.

TCS, India's only company with a market capitalisation of more than $100 billion, is the first to report for the quarter and will set the tone for India's $154 billion IT sector.

The Mumbai-headquartered company posted a net profit of 73.40 billion rupees in the quarter ended June 30, compared with 59.45 billion rupees a year earlier, versus an analysts' estimate of 69.83 billion rupees, according to data.

Revenue from digital services such as cloud, and grew about 44.8 percent from a year earlier, while income from operations jumped about 16 percent to 342.61 billion rupees.

($1 = 68.8250 Indian rupees)

(Reporting by Krishna V Kurup in Bengaluru; Editing by Stephen Coates and Adrian Croft)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 18:18 IST
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