India’s TCS quarterly net up 12% on digital services demand
Written by on January 12, 2022
January 12, 2022
NEW DELHI (Reuters) -India’s top software services exporter Tata Consultancy Services Ltd (TCS) reported a 12.3% jump in quarterly profit on Wednesday, boosted by a demand for digital services by clients from retail to media businesses.
Mumbai-headquartered TCS reported consolidated net profit of 97.69 billion rupees ($1.32 billion) in the three months to Dec. 31, slightly below analysts’ average forecast of 98.44 billion rupees, according to Refinitiv data.
The quarter saw clients invest in technology for long-term growth, TCS said in a statement. It said growth was across all services including cloud, cyber security, consulting and services integration, “internet of things” and digital engineering.
TCS said it added 10 new clients spending more than $100 million on software services in the quarter.
The company said its attrition rate for the past 12 months stood at an industry low of 15.1% at a time when India’s IT services sector is experiencing a tech talent crunch and high attrition.
Consolidated revenue from operations jumped 16.4% to 488.85 billion rupees, TCS said.
The company also approved a share buyback worth 180 billion rupees at 4,500 rupees per share.
TCS shares ended 1.4% lower ahead of earnings in a broader Mumbai market that closed 0.9% higher.
($1 = 73.8940 Indian rupees)
(Reporting by Sankalp Phartiyal, Editing by Louise Heavens and Tomasz Janowski)