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TCS Net Profit Increased In The First Quarter Due To Digital Services

Friday, 09 July 2021, 04:14 Hrs

Tata Consultancy Services Ltd (TCS) announced a 28.5 percent increase in fiscal first-quarter profit due to strong demand from financial services, retail, and healthcare clients in the United States and the United Kingdom. The company reported a profit of 9,008 crore for the three months ended June 30. However, earnings fell short of the Bloomberg consensus projection of $9,382.5 crore.

June quarter revenue grew 16.4 percent in constant-currency terms to ₹45,411 crore in line with the consensus estimate of ₹45,748.6 crore. However, weakness in some regional markets, including India, impacted sales growth.

“We believe the impact on India revenues will be reverted in the coming quarters. Hence, we expect improving revenue trajectory and expect the company to achieve double-digit revenue growth in FY22,” ICICI Securities said.

Dollar revenue for the quarter grew 21.6 percent from a year ago to $6.15 billion, helped by new orders worth $8.1 billion from banking, financial services and insurance (BFSI) and retail clients. “Our business in North America, BFSI, and retail all showed appreciable growth, which underlines the resilience of our operating model, the relevance of our offerings and, above all, the passion and dedication of our associates.,” said Rajesh Gopinathan, chief executive officer and managing director, TCS.