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Profits up at Indian IT giant TCS on overseas growth
Profits for Indian software giant TCS were up 8.7 percent on-year in the September quarter thanks to robust growth in emerging markets and client loyalty, the company announced Wednesday.
Tata Consultancy Services, India's second most valuable company by market capitalization, has benefitted from an IT boom that has seen the country become a back office to the world through subcontracted work.
The company earns more than 80 percent of its revenues from Western markets, and alongside other tech companies benefited during the pandemic from the increased demand for digital services.
Revenue at the firm was up 7.9 percent for the quarter with net profits of 113.42 billion rupees ($1.36 billion).
Analysts had widely expected India's largest software service exporter to report single-digit revenue and profit growth owing to a challenging global economic outlook.
TCS nonetheless made significant inroads into overseas markets for the period, reporting growth of 15.9 percent in the Middle East and Africa followed by a 13.1 percent increase in Latin America.
"Strong deal momentum delivered us a very large order book," chief executive K Krithivasan said at a media briefing, according to business broadsheet Livemint.
He added that resilient demand, long-term client programming and client appetite for new technologies including artificial intelligence "give us confidence in our longer-term growth prospects".
The board approved its fifth share buyback in six years at a spend of $2.04 billion with a 15 percent premium.
TCS shares closed down 0.44 percent in Mumbai trading ahead of the earnings announcement.
© 2023 AFP
