Tata Consultancy Services Beats Expectations with Strong First-Quarter Revenue Growth
BENGALURU (Multibagger) - 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.
TCS also saw its net profit rise 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.
With deals worth $8.3 billion secured during the quarter, TCS continues its streak of success after bagging record deals in previous quarters. The revenue growth was driven by mega deals, including partnerships with Bharat Sanchar Nigam (BSNL) and insurer Aviva (LON:).
Notably, revenue in the manufacturing segment rose 9.4% year-over-year, although some verticals like banking and financial services experienced a decline.
TCS's performance is closely watched as it sets the tone for the Indian tech sector. Shares listed in Mumbai closed 0.37% higher ahead of the results.
Analysis:
Tata Consultancy Services has shown strong growth in the first quarter, surpassing market expectations. This performance indicates the company's ability to secure large deals and navigate challenges in certain verticals. Investors may see this as a positive sign of stability and growth potential in the IT services sector.