MUMBAI (Reuters) – Tata Consultancy Services Ltd (TCS.NS), India’s top software services exporter, on Thursday reported a record quarterly profit helped by gains in key banking, financial services and insurance (BSFI) division and said it is well positioned for 2019 with a strong pipeline of orders from the customer.
Tata Consultancy Services (TCS), Chief Executive Officer Rajesh Gopinathan attends a news conference announcing the company’s quarterly results in Mumbai, India, January 10, 2019. REUTERS/Francis Mascarenhas
TCS, considered as the crown jewel of the salt-to-autos Tata Group, the kick-off for the December quarter of the revenues of the company period for Indian companies with rival Infosys Ltd (INFY.NS) are scheduled to report on Friday.
“It is a strong quarter for the storage of the calendar year and a strong pipeline and a strong current which set us nicely going into the new calendar year,” Chief Executive Rajesh Gopinathan told a news conference.
Demand for TCS’ banking and insurance services is strong in the company’s largest market of North America, Gopinathan said.
Uncertainties, such as Brexit could have an impact on customers’ tech spending in continental Europe and great Britain, but Gopinathan said while it is difficult to predict how the macro factors, would play the company was active in taking opportunities in the region.
TCS’ digital revenues from services such as cloud, analytics and big data – grew by almost 53 percent year-on-year and now makes 30 percent of its total revenue.
“It (digital) then that tipping point and we can probably be very persistent question,” Gopinathan said.
India’s $154 billion IT industry as a whole is benefiting from moves by traditional companies to make their legacy systems to compete effectively with more nimble start-ups worldwide.
TCS, India’s largest listed company by market capitalisation, reported a net profit of 81.05 billion rupees ($1.15 billion) for the three months to the end of December, a seasonally weak quarter for the Indian IT companies by the end of the year a vacation in the big Western markets. This compared with 65.31 billion rupees a year earlier.
Analysts on average estimated TCS to make a profit of 82.19 billion rupees, according to Refinitiv data.
The revenue of the company increased by 20.8 percent to 373.38 billion rupees, while sales of the largest corporate, BSFI, increased by 23 percent.
TCS shares closed marginally higher in comparison with the rest of Mumbai market .NSEI, which ended down 0.31 percent.
Reporting By Sankalp Phartiyal in MUMBAI; Additional reporting by Arnab Paul in BENGALURU; Editing by Himani sarkar/Keith Weir/Jane Merriman