India’s TCS reports Q1 revenue tad above estimates on manufacturing boost
2024.07.11 07:16
BENGALURU (Reuters) -Tata Consultancy Services, India’s top IT services company, reported a slightly bigger-than-expected first-quarter revenue on Thursday helped by the execution of large deals bagged in previous quarters and boost from manufacturing segment.
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 three-month period, barely above the 119.78 billion rupees estimated by analysts, as per LSEG data.
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 helped by mega deals, such as Bharat Sanchar Nigam (BSNL) and insurer Aviva (LON:). TCS announced four mega deals or contracts sized over $500 million during the previous fiscal year even as clients clamped down on discretionary tech spending due to weak macros.
Revenue in the manufacturing segment rose 9.4% year-over-year. Four out its eight verticals, including banking and financial services, fell.
TCS is the first Indian tech major to report first-quarter results and its commentary sets the tone for the sector.
Shares listed in Mumbai closed 0.37% higher ahead of the results.
