fbpx
United Nations High Commissioner for Refugees (UNHCR) warns rising tide of hunger, insecurity, and underfunding worsening gender-based violence risksRead more The Royal Thai Embassy presents the cultures of Thailand at the Association of Southeast Asian Nations (ASEAN) Festival in KenyaRead more Climate change is the biggest global threat, young people in Africa and Europe tell European Investment Bank (EIB), Debating Africa and Debating EuropeRead more $2 million in prizes awarded at Conference of the Parties (COP27) to African youth-led businessesRead more Africa and Europe’s top business and public sector leaders gather to chart Africa’s economic rebirthRead more The Thai delegation’s active participation at the 145th Assembly of the Inter-Parliamentary Union (IPU) in KigaliRead more Canon shares winning image of its Redline Challenge competition 2022Read more Turning the tide on breast cancer in the Middle East and Africa (By Pelin Incesu)Read more Teaching someone to fish: the false dichotomy of relief and development (By Professor Mark Shrime)Read more Canada-Africa collaboration: Prime Minister Justin Trudeau to open Africa Accelerating 2022 on 25 OctoberRead more

Record quarterly profit for Indian software giant TCS

show caption
Rajesh Gopinathan, chief executive and managing director of Tata Consultancy Services, said it was a 'milestone quarter' for his company./AFP
Print Friendly and PDF

Oct 11, 2022 - 08:51 AM

MUMBAI, INDIA — India’s largest software exporter Tata Consultancy Services on Monday shrugged off global economic turmoil to report a record profit for any quarter, with figures that beat analyst estimates.

TCS is India’s second-most-valuable company by market capitalisation and earns more than 80 percent of its revenues from Western markets.

It has been at the forefront of an IT boom that has seen India become a back office to the world as firms in North America and Europe subcontract work, taking advantage of a skilled English-speaking workforce.

More recently, technology companies have benefited from a boost in demand for digital services since the pandemic.

Net profit at the IT giant rose 8.4 percent year-on-year in the three months to September to reach 104.3 billion rupees ($1.26 billion), with revenues up 18 percent to 553.1 billion rupees.

The net profit figure was 1.4 billion rupees ahead of analysts’ average estimate, according to Bloomberg News.

“This is a milestone quarter for us,” chief executive officer Rajesh Gopinathan told a media briefing, pointing to net profit surpassing 100 billion rupees for the first time.

“Of course, the environment is challenging and it requires all of us to remain very vigilant,” he said, adding that customers were relying on TCS’s diversified services to manage volatile market conditions.

Its overseas growth in the quarter was led by North America, which contributed half of its business and saw revenue growth of 17.6 percent.

The company — one of India’s largest private employers — slowed its hiring despite its attrition rate rising to 21.5 percent.

Competition for employees has driven up salaries and weighed on operating margins in recent quarters, but TCS said attrition — a key metric for IT companies — has “peaked” and will “taper down from this point”.

Operating margins at the Mumbai-headquartered company contracted 1.6 percentage points to 24 percent, while its order book stood steady at $8.1 billion at the end of September.

Shares in the firm closed 1.84 percent higher in Mumbai ahead of the release of the results.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.