Tata Consultancy Services first-quarter profit beats on banking boost

 Tata Consultancy Services Ltd, India’s biggest software services company, said on Tuesday its first-quarter profit beat estimates, helped by a strong performance from its key banking, financial services and insurance (BFSI) segment.

TCS is the country’s second-most valuable company and its earnings are seen as a marker of the $ 150 billion IT services sector’s health.

The Mumbai-headquartered company said it earned 11.2% more in revenue from its BFSI clients compared to a year earlier.

That helped boost its net profit for the quarter ended June 30 to 81.31 billion rupees ($ 1.19 billion) from 73.40 billion rupees a year earlier. Revenue rose 11.4%.

Analysts on average had expected the company to post a profit of 78.24 billion rupees, according to Refinitiv data.

“Our margins this quarter fully reflect the annual increments that we effected across the board in April,” TCS Chief Financial Officer V Ramakrishnan company said in a statement.

The company’s biggest rival, Infosys Ltd, will report its first-quarter earnings on Friday.

TCS shares closed down 1.9% on Tuesday in a flat Mumbai market.