Company beats expectations, posts strongest growth in three years
Revenues of Tata Consultancy Services (TCS), an Indian software company, grew by 5.5% to $3.69bn in the quarter ended June, marking the firm's strongest growth in three years.
TCS said the sequential growth was the highest in 12 quarters, while the incremental revenue growth of $191m, the highest in 15 quarters, was mainly driven by holistic growth across markets led by North America, Asia-Pacific, India, the UK and Europe.
"Growth was seen across all industry segments led by media & information services, life sciences, retail, telecom with all non-BFS verticals growing in excess of 5 percent sequentially," the company said in a filing.
This year, TCS won two multi-year, multi-million dollar deals from a North American global pharmaceutical and medical device company and a global semiconductor company. It also won multi-million euro deal from fashion apparel retailer in Europe.
"We had 7 large deals during the quarter and currently at least 8 large deals are under discussion," a company executive said.
The company's revenue, compared to the same quarter a year ago, grew 16.7%. Its net profit also stood at $845m, up 20.5% compared to the same quarter last year, leaving behind its major rival Infosys, whose volume growth was 2.9% in the last quarter.
TCS is betting big on technologies such as cloud computing and mobile applications, chasing high-margin outsourcing contracts to respond to growing competition.