Reuters | | Posted by Animesh Chaturvedi
Tata Consultancy Services Ltd reported a bigger-than-expected rise in fourth-quarter profit on Wednesday as India’s top IT exporter saw firm demand for digital services despite a challenging macroeconomic backdrop.
(Aniruddha Chowdhury/Mint)
The company’s net profit rose 14.8% to 113.92 billion rupees ($1.39 billion) in the three months ended March 31, from 99.26 billion rupees a year earlier.
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Analysts on average had expected a profit of 110.13 billion rupees, according to Refinitiv IBES data.
TCS is the first among its peers to report quarterly earnings, setting the tone for an industry that is staring at a recession in its major markets, the U.S. and Europe, and turmoil in the U.S. banking sector.
The company is also seeing a CEO transition, with K Krithivasan taking over as the new CEO on June 1 in place of Rajesh Gopinathan, who resigned in March.
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TCS said its order book for the Jan-March period stood at $10 billion, up 28% sequentially, with an “all-time high number of large deals.”
“The strength of our order book demonstrates the resilience of demand for our services and gives us visibility for growth in the medium term,” Gopinathan said in a statement.
Revenue from operations rose about 17% to 591.62 billion rupees.