TCS reports 15% jump in profit on cloud services demand
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BENGALURU - Tata Consultancy Services Ltd reported a 14.9% rise in March-quarter profit on Monday, as India's top IT services firm benefited from an uptick in cloud services demand during the COVID-19 crisis.
The results kick off India's corporate earnings season for the final quarter of the financial year, with analysts expecting another period of growth for IT firms as businesses spend on cloud-computing and cyber-security to aid their shift to remote work.
Indian IT services companies such as TCS, Wipro and Infosys, which offer services ranging from back-office work for banks to social media content moderation and more traditional technical support, have continued winning contracts and expanding over the past few months.
TCS said revenue from its banking, financial services and insurance business rose 15.5%, the most among its units. The business was also the biggest contributor to the company's consolidated revenue, which jumped 9.4%.
The Mumbai-based company declared a final dividend of 15 rupees per share, compared with 6 rupees per share a year earlier.
Consolidated net profit rose to 92.46 billion rupees, while analysts had expected a figure of 93.63 billion rupees, according to Refinitiv data.
The company appointed Samir Seksaria as its chief financial officer, replacing Ramakrishnan V who is set to retire later this month.
(Reporting by Soumyajit Saha in Bengaluru; Editing by Aditya Soni)
