TCS reports nearly 17% jump in quarterly net profit

TCS reports nearly 17% jump in quarterly net profitSoftware services provider Tata Consultancy Services (TCS) On Thursday reported higher-than-expected consolidated net profit for the April-June quarter, thanks to new deals from foreign markets and a foreign exchange gain.

TCS, India's biggest software services exporter, said its consolidated net profit jumped 16.8 per cent year-on-year to Rs 3,831 crore during the three months ended June 30. In the corresponding period of the previous financial year, the company had pocketed Rs 3,280 crore as net profit.

Analysts, on an average, had projected a net profit of Rs 3,787 crore, on revenue of Rs 17,705 crore, for the company's April to June quarter.

The Mumbai-based company's Operating margins jumped to 26.9 per cent, higher than analysts' average projection of 26.25 per cent. Dollar revenue jumped 4.1 per cent quarter-on-quarter to US$3.17 billion during the quarter under review.

Announcing the results, TCS maintained an upbeat outlook, thanks in particular to robust demand from the U. S. Speaking to reporters, CEO N Chandrasekaran said, "Our pipeline is very very good, not only in the U. S. but also elsewhere."

The U. S. is the largest market for India's nearly $108 billion information technology (IT) sector.

TCS stock closed at Rs 1,660.40 on the National Stock Exchange (NSE), down 1.1 per cent, on Thursday.