TCS Q1 results: India’s largest IT services exporter TCS has reported stellar Q1 numbers from the quarter ended June-18, backed by robust BFSI growth and strong digital revenues. The company has reported net profit at Rs 7,340 crore compared to Rs 7,014.3 crore that analysts had estimated in a Reuters poll, implying a 23.5% on-year jump. Taking stock of the results company CEO Rajesh Gopinathan said that this was its best quarter in the last 15 quarters.
“Digital is getting integrated into other contracts … becoming core to what we are doing. Digital growth (in FY19) should definitely be over 30%,” CEO and MD of TCS Rajesh Gopinathan told in an interview to CNBC TV18. In the same interview, Rajesh Gopinathan said that one more good quarter of BFSI growth would imply a recovery in the BFSI space. “We are starting the new fiscal year on a strong note, with the growth engine firing on all cylinders. Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum,” TCS CEO and MD Rajesh Gopinathan said in statement.
Notably, the North America segment also showed signs of improvement in the latest quarter. Growth in North America in the first quarter was 7% on-year compared to a 4.9% growth in the previous quarter. North America revenue rose 3.7% sequentially.
Taking stock of this performance, Gopinathan told CNBC TV18 that North America business is firing, and the company should get to double digit growth soon. Rajesh Gopinathan noted that the company has bagged deals worth more than $1 Bn in BFSI this quarter. Gopinathan exuded confidence that the company is poised “well for the future” given a good set of wins during the quarter, a robust deal pipeline and accelerating digital demand.
TCS CFO V Ramakrishnan said that a disciplined execution, accelerating growth and currency support helped the company mitigate the impact of wage increases during the quarter. “This strong start gives us greater confidence in our ability to get our operating margin to our preferred range, while continuing to fund the digital investments that are differentiating us in the marketplace,” Ramakrishnan said.