Tata Consultancy Services (TCS) on Friday reported a 7.2 per cent jump in its profit for the final quarter of 2020, as India’s top software services firm benefitted from greater demand for its cloud services during the Covid-19 pandemic. (Also Read: TCS Shares Gain 2% Ahead Of December Quarter Earnings )
The results kick off India’s corporate earnings season for the December quarter, a seasonally weak period for the software industry, but one which analysts reckon has been good for IT firms in 2020 because in part due to the Covid-19 crisis.
TCS and rivals, Infosys and Wipro, have been winning more large contracts from businesses that are investing in services such as cloud-computing and cybersecurity to support their shift to remote work.
“Growing demand for core transformation services … have driven a powerful momentum that helped us overcome seasonal headwinds,” TCS Chief Executive Officer Rajesh Gopinathan said in a statement to the stock exchanges.
The Mumbai-based company said revenue from the banking and finance industries, its top revenue contributor, jumped 7.6 per cent year-over-year to Rs 16,655 crore ($2.27 billion) in the December quarter.
TCS’ net profit rose to Rs 8,701 Crore in the three months to December 31, 2020, from Rs 8,118 Crore a year earlier. Analysts on average had expected a profit of Rs 84.01 billion, according to Refinitiv data. Revenue from operations jumped 5.4 per cent to Rs 42,015 Crore.