India software giant TCS books quarterly profit rise
India's biggest IT sourcing firm Tata Consultancy services reported better-than-expected quarterly earnings on Thursday, boosted by rising demand for its cloud computing services.
The firm, based in India's financial capital Mumbai, said net profit for the three months to June 30 rose to 63.17 billion rupees ($944 million) from 57.09 billion rupees for the same period a year ago.
That was above the 60.6 billion-rupee average from a survey of analysts' estimates compiled by Bloomberg News and marked an increase of over nine percent on-year.
"Strong execution and accelerating customer adoption of Cloud, Big Data & Analytics has driven broad-based growth across key markets and industries," TCS chief executive N. Chandrasekaran said in a statement.
"Our investments in platforms are gaining significant traction as customers look to boost business agility and enhance their time-to-market advantage to gain a competitive edge."
Chandrasekaran told a press conference he remained optimistic about future earnings and said the firm recorded digital revenues at 15.9 percent in the first quarter. TCS added 17,792 new employees during the just-ended quarter.
India has become a back office to the world as companies, especially in developed nations, have subcontracted work to firms such as TCS, taking advantage of the country's skilled English-speaking workforce.
The flagship industry has made India a top business destination by offering software development and information technology, engineering and design and other services.
TCS competitor Infosys is due to release its quarterly results on Friday.
© 2016 AFP