India’s largest IT services company Tata Consultancy Services (TCS) on October 9 reported $10 billion in total contract value (TCV) for the quarter ended September 30, driven by a $640-million mega deal from Scandinavian non-life insurance company Tryg.
The company reported broad-based positive sequential growth in constant currency (CC) in banking, financial services and insurance (BFSI) at 1.1 percent, technology & services was up by 1.8 percent.
Meanwhile, Life Sciences and Healthcare grew by 3.4 percent, manufacturing grew 1.6 percent sequentially in CC, Communications, Media, and Information services (CMI) grew by 0.8 percent despite industry specific challenges amid macroeconomic uncertainties due to US trade tariffs.
Consumer business and regional markets dregrew by 1 percent and 1.1 percent QoQ respectively.
The TCV for the quarter was 16.28 percent higher than the $8.6 billion reported in the year-ago period and was up almost 6.38 percent from the previous quarter.
K Krithivasan, Chief Executive Officer and Managing Director, TCS said “I am pleased with our strong Q2 performance. I would like to thank all our employees for their dedication and excellence. We are on a journey to become the world’s largest AI-led technology services company.”
“Our journey is anchored in bold transformation across talent, infrastructure, ecosystem partnerships and customer value. The investments including the building of a world-class AI infrastructure business demonstrate our commitment to this transformation,” he added.
Some of the key deal wins this quarter include the seven-year contract with Tryg, IT transformation and cloud migration deal with pharma company Unilab, multi-year partnership with Australia’s ARN Media, a digital transformation partnership with New Zealand’s largest retailing group The Warehouse Group.
TCS reported its Q2 earnings on October 9. Net profit rose 1.4 percent year-on-year at Rs 12,075 crore for the quarter ended September 30. The net profit was slightly lower than the Street estimates as the company accounted for a Rs 1,135 crores restructuring expense, likely driven by the ongoing layoffs that will impact over 12,000 jobs at TCS.
TCS' revenue for the quarter stood at Rs 65,799 crore, marking a 3.7 percent sequential rise and 0.8 percent growth in constant currency terms.
Operating margin expanded by 70 basis points QoQ to 25.2 percent.
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