The company’s consolidated revenue rose 5.4% to 626.13 billion rupees ($7.50 billion) in the June quarter. Analysts, on average, expected revenue at 622.07 billion rupees, as per LSEG data.
The Tata group company’s net profit rose 8.7% to 120.40 billion rupees in the first quarter, barely above the 119.78 billion rupees forecast by analysts.
The company won deals worth $8.3 billion during the quarter. It bagged a record $13.2 billion worth of deals in the previous quarter and $10.2 billion in the first quarter of fiscal 2024.
The revenue was bolstered by mega deals, such as Bharat Sanchar Nigam (BSNL) and insurer Aviva (LON:AV). TCS announced four mega deals or contracts sized over $500 million in the last fiscal year even as clients clamped down on discretionary tech spending due to uncertain macroeconomic environment.
Revenue from the manufacturing segment rose 9.4% year-over-year. Four out of its eight verticals, including banking and financial services, fell.
Sanjeev Hota, head of research at Sharekhan by BNP Paribas (OTC:BNPQY), called it a “solid” quarter with strong revenue growth.
“Expecting an overall demand recovery in second-half of FY25 (for the Indian IT sector) as most of the headwinds are bottoming out while FY26 will be a full-blown recovery,” Hota added.
Indian IT companies, which earn a significant share of their revenue from the U.S., stand to benefit from a likely early rate cut in the world’s biggest economy, according to analysts. Conclusion of U.S. presidential elections could also aid demand recovery this year, they added.
TCS’ shares closed 0.37% higher ahead of the results.
Source: Economy - investing.com
