Tata Consultancy Services Ltd.’s first-quarter profit beat analysts’ estimates after the IT services provider won orders in a tough climate for information-technology services.
(Bloomberg) — Tata Consultancy Services Ltd.’s first-quarter profit beat analysts’ estimates after the IT services provider won orders in a tough climate for information-technology services.
Net income rose 17% to 110.7 billion rupees ($1.3 billion) in the quarter through June, TCS said in a statement Wednesday. Analysts estimated 109.36 billion rupees on average. Sales climbed 13% to 593.8 billion rupees.
India’s $245 billion software services sector, led by TCS, is facing a slowdown as customers across industries curb information-technology expenditures to cope with higher interest rates and elevated levels of inflation. TCS is among companies trying to expand to higher-margin services powered by technologies such as artificial intelligence to keep fueling growth.
Even as economic challenges mount, Mumbai-based TCS has won some large contracts in recent months, including a deal potentially worth £1.5 billion ($1.9 billion) with a UK pension company.
In a surprise announcement in March, former CEO Rajesh Gopinathan said he would step down from his post and depart from the company in September. K. Krithivasan, who previously lead its banking and financial services business, took over at the start of June.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.