TCS Q1 profit rises 23.5% on BFSI turnaround

TCS reported a net profit of Rs 7,340 crore in the June quarter (Q1), driven by strong deal wins. Read the full report

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India’s biggest IT company, Tata Consultancy Services (TCS) reported a net profit of Rs 7,340 crore in the June quarter (Q1), driven by strong deal wins. Its net profit grew 23 .73% year-on-year, or 6.3% sequentially, driven by a strong growth in its digital revenue. Revenue rose to Rs 34,261 crore, up 15.8% year-on-year and 6.8% quarter-on-quarter.

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For the June quarter, TCS was expected to post a net profit of Rs 6,985 crore on revenues of Rs 33,966 crore, according to Bloomberg estimates.

The digital business, which grew nearly 45% year-on-year, contributed nearly 25% towards its total revenue.

Commenting on the Q1 performance, CEO and MO, Rajesh Gopinathan said: “We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders. Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum. With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future.”

Gopinathan added: “Customers across verticals and markets are embracing our Business 4.0 thought leadership framework and accelerating their digital transformation journeys. Our contextual knowledge, full spectrum capabilities and investments in research and innovation are making us their preferred partner for their growth and transformation initiatives.”

TCS also announced an interim dividend of Rs 4 per equity share of the company.

In arrangement with HT Syndication | MINT

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