TCS, the country’s biggest software services exporter, posted a higher-than-expected profit in the fourth quarter, helped by the number of contracts the firm won.
TCS’s strong results echoed those of smaller rival Infosys, which kicked off the earnings season last week with a higher profit and a healthy revenue forecast for the year, even as its margin forecast failed to impress. Strong demand in digital and large contract wins helped growth in the quarter, CEO Rajesh Gopinathan said on Thursday.
Revenue from digital services such as cloud, analytics, big data grew about 43%. TCS said revenue from its banking, financial services and insurance business, the company’s biggest revenue stream, rose 5 % to ₹12,430 crore.
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Net profit attributable to shareholders rose 4.5% to ₹6,904 crore, beating analysts’ average estimate of ₹6,798 crore, according to Thomson Reuters data.
TCS posted 8.2% rise in income from operations. The board has recommended a 1:1 bonus share issue.