TCS Q3 results: TCS reports higher profit as remote work drives cloud demand – Times of India

BENGALURU: Tata Consultancy Services (TCS) on Friday reported a 7.2% jump in its profit for the final quarter of 2020, as India’s top software services firm benefited from greater demand for its cloud services during the Covid-19 pandemic.
The results kick off India’s corporate earnings season for the December-quarter, a seasonally weak period for the software industry, but one which analysts reckon has been good for IT firms in 2020 thanks in part to the Covid crisis.
TCS and rivals, Infosys and Wipro, have been winning more large contracts from businesses that are investing in services such as cloud-computing and cybersecurity to support their shift to remote work.
“Growing demand for core transformation services … have driven a powerful momentum that helped us overcome seasonal headwinds,” TCS chief executive officer Rajesh Gopinathan said in a statement to the stock exchanges.
The Mumbai-based company said revenue from the banking and finance industries, its top revenue contributor, jumped 7.6% year-over-year to Rs 16,655 crore ($2.27 billion) in the December-quarter.
TCS net profit rose to Rs 8,701 crore in the three months to December 31, 2020, from Rs 8,118 crore a year earlier. Analysts on average had expected a profit of Rs 8,401 crore, according to Refinitiv data.
Revenue from operations jumped 5.4% to Rs 42,015 crore.