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Tata Consultancy Services Ltd net profit for the July-September quarter rose 7.6 per cent over to Rs 7,901 crores quarter-on-quarter basis, on the back of margin expansion as the software services exporter benefited from a seasonal jump in business and a falling rupee, according to its stock exchange filings.
Operating profit surged by 13.9 per cent to Rs 9,771 crores. Revenue increased 7.6 per cent to Rs 36,854 crores. The Margin, for the first time in seven quarters, grew to more than 26 per cent, as TCS margin expanded 150 basis points to 26.5 per cent.
In the statement to media, Rajesh Gopinathan, Chief Executive Officer said: “Revenue growth was driven by expanding demand for digital transformation across verticals, and continued acceleration in BFSI and retail.”
N Ganapathy Subramaniam, chief operating officer and executive director, said: “This has been a very good quarter, with strong demand in areas like analytics, cloud and automation.”
Referring to the ongoing Brexit and trade wars, Subramaniam said that TCS is expecting to face few hurdles over the course of the next two quarters, partly due to seasonality and macroeconomic headwinds. “The immediate short-term view is quite difficult to call. There are uncertainties out there,” he added.
According to the company’s statement, Digital services account for around 28 per cent of their total revenue, increasing 60 per cent in constant currency terms over last year. Dollar revenue rose 3.2 per cent to US$ 5.2 billion.
