Profits rise at Tata Consultancy
INDIA’S largest software exporter Tata Consultancy Services (TCS) saw its quarterly profits jump nearly 15 per cent on Monday (12), after scoring a record $9.2 billion (£6.7bn) in new orders between January and March, as the pandemic boosted demand for digital services.
Net profit at the information technology giant climbed to `92 billion (£0.9bn) in the first three months of 2021, an increase of 14.9 per cent compared to the same period last year.
Big ticket orders from clients such as SODEXO SA, Virgin Atlantic Airways UK and Carrefour Belgium helped the firm’s quarterly revenues reach Rs 437 bn, a year-on-year increase of 9.4 per cent. “While we continue to dominate in our traditional areas of strength, we are making good progress in gaining share in the growth and transformation opportunity,” TCS chief executive Rajesh Gopinathan said.
“Our focus going into FY 22 will be to engage with clients in their growth agenda, propelled by innovation and leverage of collective knowledge.”
India’s software services industry has enjoyed a rebound in recent months, emerging as a rare bright spot for the economy, after coronavirus-led lockdowns last year dampened appetite among western clients looking to cut spending.
The country’s second-most valuable firm by market size added close to 19,400 employees in the last quarter, reflecting its confidence in future prospects for growth.
The company earns more than 80 per cent of its revenues from Western markets, including Britain, the United States and Europe.
TCS was at the forefront of an IT boom that saw India become a back office to the world as firms in developed nations subcontracted work.