BENGALURU (Reuters) -Tata Consultancy Services, India’s top IT services company, beat estimates for second-quarter revenue on Thursday as the banking vertical, its biggest business, posted marginal growth.
Revenue from the banking, financial services and insurance segment (BFSI) rose 0.1% from a year earlier, as some of the deals signed in previous quarters began contributing to the company’s top line.
“Amidst an uncertain geopolitical situation, our biggest vertical, BFSI showed signs of recovery,” CEO and Managing Director K Krithivasan said in a statement.
Global banks have begun reviving the technology projects they put on ice in 2023, raising hopes for the $254 billion Indian IT sector, which relies on BFSI clients for a third of its revenue.
Other top verticals such as consumer and life sciences too reported marginal growth.
TCS’s consolidated revenue rose 7.7% to 642.59 billion rupees ($7.66 billion) in the September quarter from a year earlier. Analysts on average expected revenue of 640.93 billion rupees, as per estimates compiled by LSEG analysts.
The Tata Group company’s net profit rose 5% to 119.09 billion rupees in the three-month period, but came in below the 125.02 billion rupees expected by analysts, as per LSEG data.
Its total order bookings stood at $8.6 billion during the quarter, compared to $8.3 billion in the previous quarter and $11.2 billion in the year-ago period.
TCS is the first Indian tech major to report earnings for the latest quarter. Rival HCLTech reports its numbers on Monday.
Shares listed in Mumbai closed 0.6% lower ahead of the results.
($1 = 83.9420 Indian rupees)
(Reporting by Sai Ishwarbharath B; Editing by Janane Venkatraman)
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