India's TCS profit jumps on digital services demand

·1-min read
Tata Consultancy Services CEO Rajesh Gopinathan attends a news conference announcing the company's quarterly results in Mumbai

BENGALURU (Reuters) -Indian software behemoth Tata Consultancy Services Ltd reported a 29% rise in quarterly profit on Thursday, powered by higher demand for cloud services and strong growth in its mainstay banking and finance business.

The upbeat results from TCS, the country's top software exporter, mark the start of what is expected to be another strong earnings season for India's IT firms thanks to larger contracts in fields ranging from cloud-computing to digital payment infrastructure.

"Growth in the quarter was led by cloud platform services, cyber security, analytics and insights and enterprise application services," the company said in a statement.

Mumbai-based TCS's net profit rose to 90.08 billion rupees ($1.20 billion) in the three months to June 30, from 70.08 billion rupees a year earlier.

Analysts had expected a figure of 93.72 billion rupees, according to Refinitiv IBES data.

Revenue from operations jumped 18.5% to 454.11 billion rupees, with the company's major banking and finance industries-focused unit posting a near 19% rise compared with a year earlier.

TCS's performance in the year-ago quarter was impacted by clients cutting back on spending due to the COVID-19 pandemic.

($1 = 74.7920 Indian rupees)

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Arun Koyyur, Aditya Soni)

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