MUMBAI: Tata Consultancy Services (TCS) on Tuesday reported a 23 per cent increase in its net profit at `7,340 crore for the quarter ended June 2018 as against Rs 5,945 crore during the corresponding period a year ago.
Total revenue grew alongside profit by 16 per cent at Rs 34,261 crore during the quarter under review over the previous fiscal, while sequentially, it registered a growth of 7 per cent. Operating profit shot up 5.3 per cent to Rs 8,578 crore over the previous quarter.
The healthy double-digit rise in profit was on account of the turnaround in its BFSI segment, particularly the banking vertical, according to Rajesh Gopinathan, CEO, TCS.
The BFSI segment grew 4.1 per cent on a year-on-year basis. “BFSI demand is coming across the board, whether it is reimagining customer experience or customer front end, including wealth management,” he said, adding that the company was upbeat about demand coming from the vertical in the medium-term.
Besides, the company’s North America business, which contributes over 50 per cent of the revenues, grew at its fastest in the last three years. Interestingly, UK registered a growth of 18 per cent driven by large deals.
“With a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand, we are positioned well for the future,” he said. It may be noted that the company added two clients in the above $100 million revenue category, taking the total to over 40. It also added over 13 clients in the $50 million revenue bracket during the quarter.
As for the segment-wise break-up, digital revenue, stood out, constituting 25 per cent of the total revenue, and registering three consecutive quarters of growth in excess of 35 per cent. According to N Ganapathy Subramaniam, COO & Executive Director, TCS, the company’s digital offerings were gaining traction, be it in block chain, IoT or others. Likewise, the energy and resources vertical too saw a healthy growth of over 30 per cent.