Indian IT giant Tata Consultancy Services on Thursday posted an 8.7 per cent on-year rise in net profit for the June quarter, matching analyst expectations and reflecting higher levels of client spending.
The Mumbai-headquartered firm is the second-biggest in India by market cap and earns more than 80 per cent of its revenue from Western markets.
TCS had seen demand tamper after the end of the coronavirus pandemic as customers cut back on tech spending due to higher inflation and an uncertain global economic outlook.
But the company has forecast stronger performance in the year ahead with a global economic bounceback and willingness by customers to spend on generative artificial intelligence technologies.
Quarterly revenue rose 5.4 per cent year on year to hit $7.49 billion (626.1 billion rupees) while net profit was $1.44 billion for the same period, the company said.
The results were buttressed by a 9.4 per cent year-on-year revenue bump in the company’s manufacturing division.
In a statement, chief executive K Krithivasan said TCS had a “strong start to the new fiscal year”, with “all-round growth across industries and markets”.
Chief financial officer Samir Seksaria said the firm had been able to deliver a “strong operating margin performance” despite higher payroll costs due to “annual wage increments in this quarter”.
The group’s Indian rival Infosys is due to report its quarterly results next week.
TCS shares closed 0.37 per cent higher in Mumbai ahead of the earnings announcement.
Source: www.khaleejtimes.com