India's TCS records fourth quarter profit
India's biggest IT sourcing firm Tata Consultancy Services (TCS) reported a 4.2 percent increase in quarterly earnings on Tuesday, just missing analysts' estimates.
It was the first quarterly earnings reported under its new chief executive Rajesh Gopinathan, who was appointed in February this year after Tata Group ousted former chairman Cyrus Mistry amid a legal tussle.
On Monday, TCS had approved a 160 billion rupee ($2.4 billion) share repurchase to improve returns for share holders, Bloomberg reported.
The buyback had a direct impact as TCS' shares jumped 6.1 percent on Mumbai's stock exchanges.
"2016-17 was a year of broad-based growth amid economic and political turbulence in our key markets. We added USD 1.4 billion in constant currency revenues during the year," Gopinathan said in a statement.
The company's digital business grew 29 percent annually to US$3 billion, he added.
TCS shares had fallen by nearly a percent in the closing hours of trade.
A Bloomberg survey of analysts had forecast the Mumbai-based company to increase its earnings to 66.54 billion rupees.
India has become a back office to the world as companies largely in developed nations have subcontracted work to firms like 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 released its fourth quarter results to subdued growth last week.
© 2017 AFP