TCS posts record quarterly profit on strong growth in BFSI unit

India’s top software services exporter, Tata Consultancy Services Ltd, posted a record quarterly net profit in the June quarter, driven by robust growth in its Banking, Financial Services and Insurance (BFSI) division.

TCS, whose first-quarter profit beat analysts’ expectations, had said in April it expected a rebound in spending by its key BFSI clients in North America, its biggest market, in the financial year to 2019.

Revenue from its BFSI business, the company’s biggest revenue stream, rose to 134.64 billion rupees ($ 1.96 billion)from 117.89 billion rupees, the company said in a statement on Tuesday.

“Our banking vertical recovered very nicely this quarter, while other industry verticals maintained their momentum,” Chief Executive Rajesh Gopinathan said, adding the revenue growth this quarter was the fastest in the last 15 quarters.

TCS, India’s only technology company with a market capitalisation of more than $ 100 billion, is the first software services exporter to report for the quarter and will set the tone for India’s $ 154 billion IT sector.

The Mumbai-headquartered company posted a net profit of 73.40 billion rupees in the quarter ended June 30, compared with 59.45 billion rupees a year earlier, versus an analysts’ estimate of 69.83 billion rupees, according to Thomson Reuters data.

Revenue from digital services such as cloud, analytics and big data grew about 44.8 percent from a year earlier, while income from operations jumped about 16 percent to 342.61 billion rupees.