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BCN-05
INDIA-ECONOMY-EARNINGS-TCS-INFOSYS
India’s TCS reports 11% rise in profits
MUMBAI, July 10, 2019 (BSS/AFP) – India’s biggest software outsourcing
firm Tata Consultancy Services (TCS) Tuesday reported record quarterly
earnings, buoyed by a growing demand for its banking and financial services.
Mumbai-based TCS posted a 11.2 percent rise in net profit to 81.31 billion
rupees ($1.20 billion) for the quarter that ended June 30, up from 73.40
billion a year earlier, the company said in a statement.
The earnings of TCS are seen as an indicator of the overall performance of
the IT services sector.
“Our margins this quarter fully reflect the annual increments that we
effected across the board in April,” TCS chief financial officer V.
Ramakrishnan said in a statement.
TCS was at the forefront of India becoming a back office to the world as
companies — largely in developed nations — subcontracted work, taking
advantage of the country’s skilled English-speaking workforce.
“We continue to execute well and delivered some significant transformation
programs to our customers during the quarter. Our platforms for the financial
industry are doing well,” said N. Ganapathy Subramaniam, the chief operating
officer.
The company also said it had added more women to its workforce, who now
make up 36.1 percent of it.
In November 2018, TCS was cleared of anti-American bias by a Californian
court after former staffers, mostly Americans, had accused the IT giant of
predominantly hiring Indians and firing locals.
TCS gets more than 80 percent of its revenues from Western markets
including the United States and Europe.
India’s $150 billion IT sector has long been one of its flagship
industries and despite multiple challenges, they continue to boast healthy
balance sheets.
Shares of TCS fell almost two percent on the Bombay Stock Exchange sensex
index as the markets had closed before the results were announced.
TCS rival Infosys is expected to announce its quarterly earnings on
Friday.
BSS/AFP/HR/0955