India’s largest IT exporter Tata Consultancy Services (TCS) on Friday said it recorded 7% increase in net profit for the quarter ending 31st December, 2020 at ₹8,701 crore as compared to ₹8,118 crore in the year-ago period. The company benefited from greater demand for its cloud services during the COVID-19 pandemic.
The company’s revenue increased by 5% to ₹42,015 crore from ₹39,854 crore in the corresponding period last financial year.
The company announced interim dividend of ₹6 per share for which the record date is 16th January and payment date is 3rd February. The company’s revenue from the banking and finance industries jumped 7.6% year-over-year to ₹16,655 crore in the December-quarter. This is the strongest December quarter growth in nine years, TCS said
On Friday, the company’s scrip on BSE closed nearly 3% higher at ₹3,120.35. Its shares are up 38% over the past year, outperforming the Sensex’s 19% climb.
“Growing demand for core transformation services and strong revenue conversion from earlier deals have driven a powerful momentum that helped us overcome seasonal headwinds and post one of our best performances in a December quarter. We are entering the new year on an optimistic note, our market position stronger than ever before, and our confidence reinforced by the continued strength in our order book and deal pipeline,” said Rajesh Gopinathan, Chief Executive Officer and Managing Director, TCS.
TCS has recently acquired the IT unit of Deutsche Bank AG and Pramerica Systems, a unit of Prudential Financial Inc., which could help it expand into new areas.
Earlier this week, Tata Sons tendered shares worth ₹9,997 crore of Tata Consultancy Services during the IT major’s ₹16,000 crore-buyback offer.
Tata Sons, the single largest shareholder of TCS tendered more than 3.33 crore shares during the offer, according to a regulatory filing.
TCS said over 5.33 crore equity shares were bought back under the offer at a price of ₹3,000 apiece and out of the total, Tata Sons’ 3,33,25,118 shares were accepted under the buyback offer.