TCS reports record profits

INDIA’S largest software exporter Tata Consultancy Services on Monday (10) shrugged off global economic turmoil to report a record profit for any quarter, with figures that beat analyst estimates.

TCS is India’s secondmost-valuable company by market capitalisation, and earns more than 80 per cent of its revenues from Western markets.

More recently, technology companies have benefited from a boost in demand for digital services since the pandemic.

Net profit at the IT giant rose 8.4 per cent year-onyear in the three months to September to reach `104.3 billion (£1.13bn), with revenues up 18 per cent to `553.1bn (£6.06bn).

The net profit figure was `1.4bn ahead of analysts’ average estimate, according to Bloomberg News.

“This is a milestone quarter for us,” the TCS CEO Rajesh Gopinathan told a media briefing, pointing to net profit surpassing `100bn for the first time.

“Of course, the environment is challenging and it requires all of us to remain very vigilant,” he said, adding that customers were relying on TCS’s diversified services to manage volatile market conditions.

Its overseas growth in the quarter was led by North America, which contributed half of its business and saw revenue growth of 17.6 per cent.

The company – one of India’s largest private employers – slowed its hiring despite its attrition rate rising to 21.5 per cent. Competition for employees has driven up salaries and weighed on operating margins in recent quarters, but TCS said attrition – a key metric for IT companies – has “peaked” and will “taper

down from this point”.