TCS Q1 PROFIT JUMPS 23% AT ` 7,340CR

Mumbai, July 10: Revival in both the core client segment and key operational geographies, along with some help from the currency gains, aided largest software exporter TCS to report 23 per cent jump in June quarter net at ` 7,340 crore.

The Tata Group flagship company said its total income clipped at 15.8 per cent to ` 34,261 crore under the new accounting standards.

The emerging digital segment saw a massive 44 per cent spike in revenue compared to the preceding quarter and now contributes a fourth of the total income.

Revenue from clients in the banking, financial services and insurance sectors grew 4.1 per cent on constant currency basis as against the preceding three months - the fastest growth in the past 15 quarters - leading to a shift in the management commentary on growth expectations.

TCS chief executive and managing director Rajesh Gopinathan said he is enthused by the rising demand from BFSI clients and sees the “green shoots developing nicely” to make him confident of sustaining the momentum and “positive in the medium- term”.

Despite all the protestations by the Donald Trump Administration, North America led by the US, which is its largest operational and income geography netting over 65 per cent of sales, also picked up steam with a 7 per cent revenue growth in constant currency terms and Gopinathan said he is confident of it picking up further during the fiscal year.

Among other geographies, TCS revenues from UK grew 18.7 per cent, continental Europe ( 18.6) per cent and Asia Pacific ( 10.8 per cent). From a sectoral perspective, energy was the fastest growing at 30.9 per cent, while retail came at 10.9 per cent.