Mumbai: Profits for Indian software giant Tata Consultancy Services Ltd. (TCS) were up 8.7 per cent on-year in the September quarter thanks to robust growth in emerging markets and client loyalty, the company announced on October 11.
TCS, India’s second-most valuable company by market value, has benefited from an IT boom that has seen the country become a back office to the world through subcontracted work.
The company earns more than 80 per cent of its revenues from Western markets, and alongside other tech companies benefited during the pandemic from the increased demand for digital services.
Revenue at the firm was up 7.9 per cent for the quarter with net profits of 113.42 billion rupees ($1.36 billion).
Analysts had widely expected India’s largest software service exporter to report single-digit revenue and profit growth owing to a challenging global economic outlook.
TCS nonetheless made significant inroads into overseas markets for the period, reporting growth of 15.9 per cent in the Middle East and Africa followed by a 13.1 per cent increase in Latin America.
“Strong deal momentum delivered us a very large order book,” CEO K Krithivasan said at a media briefing, according to the business broadsheet 'Livemint'.
He added that resilient demand, long-term client programming and client appetite for new technologies including artificial intelligence “give us confidence in our longer-term growth prospects”.
The board approved its fifth share buy-back in six years at a spend of $2.04 billion with a 15 per cent premium.
TCS shares closed down 0.44 per cent in Mumbai trading ahead of the earnings announcement.